What term refers to the combined amount of currency circulating in the economy along with demand deposits in commercial banks and occasionally savings bank time deposits?

Agricultural economics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Agricultural economicsagriculture-mcqs › agricultural-economics
Published
28 Mar 2019
Last updated
28 May 2026

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Explanation

The money supply represents the total amount of currency in circulation plus demand deposits held in commercial banks and, at times, savings bank time deposits. This aggregate measures the liquid money available in the economy. Other options like bank credit or capital stock do not encompass this full definition.

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