According to the standard concept of money supply what is it composed of ........

According to the standard concept of money supply, what is it composed of?

currency with the public

demand deposits with the public

both a and b

none of the above

- The concept of money supply refers to the total amount of money in an economy at a particular time.

- Currency with the public includes coins and paper money that people physically hold.

- Demand deposits with the public are bank account balances that can be accessed on demand, like checking accounts.

- Option 1 only considers physical currency.

- Option 2 only considers the money in bank accounts.

- Option 3 – both a and b, includes both currency with the public and demand deposits, representing a broader view of money supply.

- Option 4 suggests neither, which doesn't align with standard measures of money supply.

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