Explain the various components of supply of money.
There are two main components of money supply
Currency component : It comprises of the currency notes and coins issued by the Monetary Authority of a country.
Deposit component : It comprises of the savings or the current account deposits held by the public in various commercial banks of the country.
Currency component : It comprises of the currency notes and coins issued by the Monetary Authority of a country.
Deposit component : It comprises of the savings or the current account deposits held by the public in various commercial banks of the country.