Only one of the following is part of the money supply.Which is it?

Question

Quizplus · Accepted Answer

Demand deposits are the only one of the options provided that are part of the money supply. Demand deposits refer to funds held in checking accounts that can be withdrawn by the account holder at any time without notice or penalty. Gold is often used as a store of value or investment, but it is not considered part of the money supply. Currency in a bank's vault is also not considered part of the money supply unless it has been lent out or is in circulation. Available credit on people's credit cards is not considered part of the money supply because it represents potential spending power rather than actual cash or checking account balances.

Only One of the Following Is Part of the Money