Supply of money refers to:
Show Hint
- Stock of money with the government.
- Stock of money with the banking system.
- Stock of money with the public at a point in time.
- Total gold reserves in the country.
The Correct Option is C
Solution and Explanation
Money Supply is a macroeconomic variable that refers to the total amount of monetary assets available in an economy at a specific time.
Step 2: Detailed Explanation:
The supply of money (also called Money Stock) is defined as the total stock of money held by the public (households and firms) at a given point in time. It includes currency (notes and coins) in circulation and demand deposits with commercial banks. Money held by the government or central bank itself is not included.
Step 3: Final Answer:
Supply of money refers to the Stock of money with the public at a point in time.
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