Question

Identify the it{incorrect feature(s) of the Money Supply in an economy, from the following:}

(i) It is measured during a period of time.
(ii) It includes stock of money held by the government of a nation.
(iii) It always represents the currency held with the Central Bank of the nation.

• A. (i) and (iii)
• B. (ii) and (iii)
• C. (i) and (ii)
• D. (i), (ii), and (iii)

Hint:

Money supply includes currency with the public and demand deposits with banks, excluding money held by the government or Central Bank.

Answer 1

The Correct Option is D

Money supply is a stock concept, measured at a single point in time, not over a duration, rendering statement (i) inaccurate.
Statement (ii) is incorrect because the government's money holdings are excluded from the money supply. 
Statement (iii) is also incorrect as the money supply comprises currency in circulation among the public, not that held by the Central Bank. 

Given that all three statements are erroneous, the correct option is (D) (i), (ii), and (iii).