Which of the following is an example of economic environment?

Money supply in economy

The correct answer is Option (1) → Money supply in economy.

The example of the economic environment among the options provided is 'Money supply in the economy'. This aspect pertains to the availability and regulation of money within an economy, which directly influences economic activities such as investment, consumption, and inflation.

The economic environment refers to the conditions and factors that affect the functioning of businesses and organizations within an economy. It encompasses various aspects related to the economic system,  Some Components of Economic Environment are as follows-

* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.