Illustrate diffrent types of money, Macroeconomics

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Q. Illustrate diffrent types of money?

In most countries, one may identify two 'types of money':

  • Bank deposits
  • Currency and coins

 

The total value of all the money in a country at a given point in time is known as the money supply and it is a significant macroeconomic variable. The reason for the significance of the money supply is that it measures how much is available for immediate consumption. There is a significant relationship between the supply of inflation and money.


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