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Identify the correct statements regarding money supply

(A) Money supply is a stock concept.

(B) Money supply is a flow concept.

(C) Money supply is the currency (cash and coins) with the public and demand deposit in banks.

(D) Money supply is the currency held with banks.

(E) Money supply is the concept of real flow.

Choose the correct answer from the options given below :

Solution

Correct Option: 1

Money supply is a stock concept (measured at a point in time), so A is correct. Money supply refers to currency with the public plus demand deposits in banks, so C is correct. B, D, and E are incorrect.

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