Money supply M0 includes:

**The reasoning** M0 is the **narrowest measure of money supply** — it captures only the most liquid (immediately spendable) forms of money. Think of M0 as "money you can touch and spend right now without needing anyone's permission." M0 includes: - Physical cash (notes and coins) in public hands - Cash in bank vaults (reserves) That's it. Just **currency in circulation**. If you can't pull it out and buy akara with it immediately, it's not M0. **Why the wrong options tempt you** **B) All bank loans** — These are promises to pay, not actual cash. They're credit, which expands the money supply at higher levels (M2, M3), but they're not liquid currency. **C) All assets** — Too broad! Your phone is an asset, but it's not money. Assets include everything you own. **D) Land only** — Land is an asset, not currency. You can't use a plot in Lekki to buy bread directly. **Quick takeaway** Remember: **M0 = "Cash I can spend NOW"** — if it's physical money changing hands today, it's M0. Everything else is either credit or assets.