Explain the concept of Money Supply.

1.	Explain the concept of Money Supply.
Answer» The Supply of Money means the total stock of money (paper notes, coins and demand deposits of banks) in circulation held by the public at any particular point of time. Thus, two components of money supply are: (i) Currency (paper notes and coins), and (ii) Demand Deposits of Commercial Banks Money supply or supply of money means total amount of money available in an economy. In other words, money supply refers to the volume of money held by the people in the country for transactions or settlement of debts.

Answer»

The Supply of Money means the total stock of money (paper notes, coins and demand deposits of banks) in circulation held by the public at any particular point of time. Thus, two components of money supply are:

(i) Currency (paper notes and coins), and (ii) Demand Deposits of Commercial Banks

Money supply or supply of money means total amount of money available in an economy. In other words, money supply refers to the volume of money held by the people in the country for transactions or settlement of debts.

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