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The components of money supply are:
Paper currency
Coins
Demand Deposits
All of these
- Paper currency: This consists of banknotes that are used for everyday transactions and are issued by a country's central bank.
- Coins: These are metallic forms of money, typically issued by the government, and used along with paper currency.
- Demand Deposits: These are bank account balances that can be accessed on demand, such as checking accounts, which are used for transactions like withdrawals and payments.
Option 4: All of these – The money supply typically includes paper currency, coins, and demand deposits, as they all contribute to the country's available money for transactions.
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