Why are demand deposits with RBI of foreign central bank and of the foreign governments included in money supply
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Heya...
Demand deposits with RBI of foreign Central banks of foreign govt included in money supply because....
That reserve money is used up in International trade payments not only for bank savings...So these used up transition money also count in money supply....
Demand deposits with RBI of foreign Central banks of foreign govt included in money supply because....
That reserve money is used up in International trade payments not only for bank savings...So these used up transition money also count in money supply....
tgaw131313:
But money supply is the stock of money with people!! And these are demand deposits of foreign banks so..??
yes...but these demand deposits are used up for our economic transactions
so it is goes through hands of people..in terms of loans from banks and so on..
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