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Which of the following is included in the supply of money in an economy?

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Question

Which of the following is included in the supply of money in an economy?

Options

  • Currency held by RBI

  • Coins lying in government treasuries

  • Total stock of money held by the public

  • Reserves of commercial banks with RBI

MCQ
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Solution

Total stock of money held by the public

Explanation: 

Money supply is defined as the total stock of money held by the public at a point of time, excluding the government, central bank and commercial banks.​

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