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.