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What is the difference between currency in circulation and currency with public

What is the difference between currency in circulation and currency with public?(eco survey)
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Comments

  • edited April 2016

    What is the difference between currency in circulation and currency with public?(eco survey)

    In simple terms, Currency with public, I think is savings which can be simply kept at home or may be invested or deposited for profit.

    ps, i may be wrong.
    Good Bye. See you Later.
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  • Currency in circulation is associated with velocity of money..while currency with public can be idle currency
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  • edited April 2016
    Please someone comment with surity & not guessing , u can do it in upsc paper.☺
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  • @mayankmishra007... Currency in circulation means the money which we deposit in banks or invest in some shares or maybe also using for consumption, so that it becomes a part of circulation in the economy. Your money deposited in banks would be forwarded to someone else as loan. That loan would service expansion of business.

    Currency with public means the idle money with us which we are neither using for consumption purpose nor depositing in bank.so this money does not enter into the circulation within the economy.
    it is better that currency remains in circulation.
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  • ^^ I think not.

    Currency in circulation means liquid money which can be instantly used for settling transactions. Like money in your pocket, money in your bank (with atm swipe or cheque issuance).

    Currency with public also includes the FD that you keep in bank. FD is not as liquid as it is not available right now. It is still money though, which will be redeemed at some point in the future.

    They are also called as narrow and broad money or m1 and m3 in economic parlance. These terms and their technical definitions you will find in any economy book.
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  • NCERT Macroeconomics me bahut badhiya se samzgaya hai yeh .
    sirf yeh hi nahin , aur bhi concepts hain us chapter me.
    For further underatanding refer to mrunal's videos , usme usne M0 , M1 etc ko book se better way me explain kiya hai imo
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  • thanks guys
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  • RBI Governor is accountable to the Parliament.

    Will this be a correct statement?

    @raghuramrajan @Teddy
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  • edited April 2016
    @IWRA Yes he is... Mrunal bhai said so in his lecture... Acc to RBI act he is answerable to standing committee on finance.
    To be, or not to be, that is the question...
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  • edited April 2016

    @IWRA Yes he is... Mrunal bhai said so in his lecture... Acc to RBI act he is answerable to standing committee on finance.

    I came from his lecture only.Lecture L1/P4 19:00.

    Confirming it from some more authentic source.
    One day, perhaps, love may die of disuse, left to rust in wind and weather.
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  • What is the difference between currency in circulation and currency with public?(eco survey)

    Currency with public- notes and coins held by public
    Currency in circulation- currency with public + cash with banks
    So currency in circulation is wider than currency with public.
    It is as simple as that why to make it so complicated.
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  • ^^ I think not.

    Currency in circulation means liquid money which can be instantly used for settling transactions. Like money in your pocket, money in your bank (with atm swipe or cheque issuance).

    Currency with public also includes the FD that you keep in bank. FD is not as liquid as it is not available right now. It is still money though, which will be redeemed at some point in the future.

    They are also called as narrow and broad money or m1 and m3 in economic parlance. These terms and their technical definitions you will find in any economy book.

    No they r not called m1 and m3
    M1(narrow money): currency with public + net demand deposits held by commercial banks
    So m1 is something more than currency with public
    M3(broad money): currency in circulation + net time deposits of commercial banks
    So m3 is something more than currency in circulation
    Pls get it right..
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