IEcoS (Economic Services) Indian Economics Money and Banking-Organisation of India's Money Market Study Material (Page 2 of 2)

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Components of Money Supply: Measures of Money Supply


Money Supply

Components of Money Supply

  • The main components of the supply of money are as follows: Currency Component -Consisting of coins and currency notes issued by the central government and Deposit Component-Consisting of deposits of general public with the commercial banks.
    • Coins: The metallic coins are issued by the country՚s monetary authority. There are two systems of coinage:
    • Free Coinage: Under this system anybody could take a fixed quantity of the metal and get it minted at the mint. The mint is open to the public.
    • Limited coinage: coinage is said t…

… (292 more words) …

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