The money supply is ?
Correct answer: D. Currency in circulation plus bank deposits
- A. State Bank of Pakistan Issue Department
- B. Money + bank cards + credit cards
- C. Cheques + money + bank cards + credit cards
- D. Currency in circulation plus bank deposits
Explanation
The money supply includes currency held by the public plus bank deposits, especially demand deposits used for payments. Bank cards, credit cards, and cheques are payment instruments rather than money themselves.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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