ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
The money supply is a measure of the total amount of monetary assets within an economy at any given time. The withdrawal of money from Demand Deposit Account does not change the aggregate money supply as the amount withdrawn remains in circulation. The only factor that changes is that the status of money has changed from ‘Demand Deposits with the Banking System’ to ‘Currency with the Public’. Thus the aggregate Money Supply will remain unchanged.
