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Economics

Supply of money

In Class 12 Economics, the topic “Supply of Money” explains the total stock of money available to the public in an economy at a given point in time. Students examine its main components—currency held by the public and demand deposits with commercial banks—and understand how broader measures may include time deposits. The topic also introduces the role of banks and the central bank in creating, regulating, and measuring money supply, linking deposits, credit creation, and monetary control to the functioning of the financial system.

Easy · Level 1 · 2 questions

Practice questions

01Money supply is studied in which area?

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02Why is money supply studied in macroeconomics?

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