The different components of the money supply reflect

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The different components of the money supply reflect variations in liquidity and accessibility of assets. The more basic forms of money, such as currency and demand deposits, are more liquid and accessible than other forms, such as time deposits and certain types of securities. This reflects the fact that people are more likely to use currency and demand deposits for immediate purchases and transactions, while other forms of money may require some level of maturity or withdrawal penalty. Domestic or international deposits, frequency of use, and whether deposits are earned or inherited can impact specific transactions or accounts, but do not define the different components of the overall money supply.

The Different Components of the Money Supply Reflect