Question

Identify the incorrect feature(s) of the Money Supply in an economy, from the following: 

1. It is measured during a period of time.
2. It includes stock of money held by the government of a nation.
3. It always represents the currency held with Central Bank of the Nation.

Options

• (i) only

• (ii) and (iii)

• (i) and (ii) 

• (i), (ii) and (iii) 

Answer 1

(i), (ii) and (iii) 

Explanation:

Money supply refers to the total amount of money in circulation in an economy, including public currency, bank demand deposits, and liquid assets. The money supply is determined at a single point in time, making it a stock variable. Government money is not included in the country's overall money supply.