ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The money supply is the total amount of money(currency+deposit money) present in an economy at a particular point in time. The standard measures to define money usually include currency in circulation and demand deposits. The record of the total money supply is kept by the Central Bank of the country.

Detailed explanation-2: -Definition: The total stock of money circulating in an economy is the money supply. The circulating money involves the currency, printed notes, money in the deposit accounts and in the form of other liquid assets.

Detailed explanation-3: -The total quantity of money in the economy at any one time is called the money supply. Economists measure the money supply because it affects economic activity.

Detailed explanation-4: -The measures of money supply in India are classified into four categories M1, M2, M3 and M4 along with M0. This classification was introduced in April 1977 by Reserve Bank of India.

Detailed explanation-5: -Money supply means the total amount of money in an economy. The effective money supply consists mostly of currency and demand deposits. Currency includes all coins and paper money issued by the government and the banks.