Using a broad definition, what are the main components of the money supply?
The broad definition of money supply refers to M4 in money supply. This M4 is M0 + M1+ M2+M3. It takes all the components of money supply. It is a wide definition of money. It includes - currency with the public + demand demand deposits in all banks(current plus savings account) + other deposits with central bank + post office savings deposits + time deposits with commercial bank ( fixedfplus recurring deposit) + total post office deposit. These all are included in broad money supply.
Get Answers For Free
Most questions answered within 1 hours.