Question

Money supply refers to ______________________.

• A. Total volume of money held by public at a particular point of time
• B. Total volume of money held by public over a period of time
• C. Total volume of money held by the government
• D. Both (a) and (b)

Answer 1

The correct option is A Total volume of money held by public at a particular point of time

Money supply is the total volume of money in circulation between the public over a period of time. Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money.