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WAEC Economics 1992 Question 33

Question 33

Money and Inflation

Money supply is the

  1. A.currency available in the banks
  2. B.currency in circulation and time deposits
  3. C.currency in circulation and saving deposits
  4. D.currency in circulation and demand deposits
Show the answer and explanation

Answer: D (currency in circulation and demand deposits)

Explanation

Narrow money supply = currency held by the public + demand deposits.