Q22 of 38 Page 1

State the meaning and components of money supply.

Money supply means the total stock of money in circulation among the public at a particular point of time.

The components of money supply are –


(i) Currency (notes and coins) held by the public.


(ii) Demand deposits and time deposits held by the banks.


(iii) Total deposits with post office (excluding National Saving Certificates)


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