Supply of money refers to the total stock of money (in the form of currency notes and coins) held by the people of an economy at a particular point of time. The following are the components of money:
(i) Curency component : It includes currency notes and coins which are issued by the monetary Authority of a country, collectively called the currency Component of the money supply, In India, RBI issues the currency notes of various denominations (such as ₹2, ₹5,₹100,₹500,₹2000 ) and the Government of India issues currency coins and notes of denomination less than and equal to ₹1.
(ii) Deposit component : The savings or the current account deposits held by the public in various commercial banks of a country. Apart from the currency notes and coins, the stock of money also includes the Saving Deposits and the Current Account Deposits held by the public in various commercial banks.