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 Form 4 Business Studies Online Lessons: Money and Banking

What is demand and supply of money?

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Answer Text:
Demand for and supply of money:
Demand for money:
-this refers to the desire to hold onto money in its cash or liquid form rather than other forms instead of spending it.
Supply of money:
-this refers to the total amount of money in circulation in an economy or country at a particular time. It consists of currency issued by the Central bank, total deposits held by the
commercial banks and international inflows


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