Question

Money supply includes __________.

• A. All Deposits in Banks
• B. Only Demand Deposits in Banks
• C. Only Time Deposits in Banks
• D. Currency with the Banks

Answer 1

The correct option is A All Deposits in Banks

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.