What are the components of money supply? is it M1, M2, M3, M4 or currency component and deposit component?
Hey Nisha,
The following are the two components of money supply.
The currency component: It comprises of the currency notes and coins issued by the Monetary Authority of a country.
The deposit component: It comprises of the savings or the current account deposits held by the public in various commercial banks of the country.
This topic is explained in detail in our study material. You can refer to the same following the below mentioned link and scroll down to the topic 'Supply of Money'
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/money-and-banking/341_1988_5840#slide3_legal-definition-of-money-and-supply-of-money
The following are the two components of money supply.
The currency component: It comprises of the currency notes and coins issued by the Monetary Authority of a country.
The deposit component: It comprises of the savings or the current account deposits held by the public in various commercial banks of the country.
This topic is explained in detail in our study material. You can refer to the same following the below mentioned link and scroll down to the topic 'Supply of Money'
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/money-and-banking/341_1988_5840#slide3_legal-definition-of-money-and-supply-of-money