According to Friedman money supply at any moment of time is 1. The number of dollars people are…
Money supply consists of currency held by the public together with their bank deposits. It is a stock measured at a particular moment. Central-bank currency issuance alone…
Choose your answer
According to Friedman money supply at any moment of time is
1. The number of dollars people are carrying in their pockets
2. The dollars people have in the form of bank deposits
3. The dollars issued by the Central Bank
4. The dollars in the account of Central Bank
Answer and explanation
Correct answer A
Money supply consists of currency held by the public together with their bank deposits. It is a stock measured at a particular moment. Central-bank currency issuance alone omits deposit money and is therefore not the complete measure described here.
Practice for these exams
-
Karnataka SET (KSET)