ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Currency is the physical money in an economy, comprising the coins and paper notes in circulation. Currency makes up just a small amount of the overall money supply, much of which exists as credit money or electronic entries in financial ledgers.

Detailed explanation-2: -Currency in circulation refers to the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses.

Detailed explanation-3: -The money supply is the total amount of money-cash, coins, and balances in bank accounts-in circulation. The money supply is commonly defined to be a group of safe assets that households and businesses can use to make payments or to hold as short-term investments.

Detailed explanation-4: -Currency in Circulation includes notes in circulation, rupee coins and small coins. The RBI has the sole right to issue currency notes. The Government of India is the issuing authority of coins and supplies coins to the Reserve Bank on demand.

Detailed explanation-5: -’Currency with the public’ is currency in circulation less cash held by banks.