Money Supply

Question 1

Narrow money

Answer 1

Used as median of exchange

Cash and liquid deposits

Question 2

Broad money

Answer 2

Includes narrows money

Also assets that store value

Too liquid to serve as median of exchange

Question 3

Sight deposits

Answer 3

Money deposited in financial institutions can be withdrawn at any time with not penalty

e.g accessing funds in current account via ATM

Question 4

Time deposits

Answer 4

Money deposited within financial institutions can only be withdrawn after certain notice

Or from which withdrawal incur penalty

e.g some saving saving acounts