0
You visited us 0 times! Enjoying our articles? Unlock Full Access!
Question

Money supply includes __________.
  1. All Deposits in Banks
  2. Only Time Deposits in Banks
  3. Currency with the Banks
  4. Only Demand Deposits in Banks

A
Currency with the Banks
B
All Deposits in Banks
C
Only Demand Deposits in Banks
D
Only Time Deposits in Banks
Solution
Verified by Toppr

Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time.

In India, money supply is measured in several ways which includes M1, M2, M3 and M4 measurement of money supply. Every measurement has it own definition with different components varying from most liquid to most rigid form. All these money supply measurement includes all types of deposits in banks including demand deposits, time deposits etc.

Was this answer helpful?
2
Similar Questions
Q1
Which of the following are included in broad money (M3) in India?
1. Currency with the public.
2. Demand deposits with banks.
3. Time deposits with banks.
4. 'Other' deposits with RBI.
Select the correct answer using the code given.
View Solution
Q2
In terms of money supply,

Currency note and coins in circulation + Net demand deposits held in commercial banks = _____
View Solution
Q3

Why do inter-banks deposits not form a part of money supply?

View Solution
Q4
In India Time Deposit of Commercial Banks and Co-operative banks are include in ________ money supply.
View Solution
Q5
In money supply, M2 includes both M1 and savings deposits with ________.
View Solution