Question 6
Money and InflationMoney supply at any given point in time refers to
- A.bank notes, coins and demand deposits
- B.notes and coins only
- C.minted money
- D.hoarded money
- E.money received as gifts.
Show the answer and explanation
Answer: A (bank notes, coins and demand deposits)
Explanation
Narrow money supply is currency (notes and coins) held by the public plus demand deposits in banks.