Explanation:
Money proper refers to the forms of money that are widely accepted as a medium of exchange, a unit of account, and a store of value. These forms of money are typically issued by a central authority and are widely used in transactions.

Types of Money Proper:

1. Bonds: Bonds are debt instruments issued by governments and corporations to raise capital. While bonds can be bought and sold in financial markets, they are not considered money proper because they are not widely accepted as a medium of exchange. Bonds represent a promise to pay back the principal amount plus interest at a future date.

2. Government Securities: Government securities, such as treasury bills and bonds, are debt instruments issued by the government to finance its spending. While these securities are considered to have low risk, they are not considered money proper because they are not widely accepted as a medium of exchange.

3. Time Deposits: Time deposits refer to funds deposited with a financial institution for a fixed period of time, typically with a higher interest rate than demand deposits. While time deposits can be converted into cash, they are not considered money proper because they are not readily available for transactions.

4. Currency Notes and Demand Deposits: Currency notes and demand deposits are considered money proper because they are widely accepted as a medium of exchange. Currency notes are physical notes and coins issued by the central bank, while demand deposits refer to funds held in bank accounts that can be withdrawn on demand. Both currency notes and demand deposits are readily available for transactions and are widely accepted.

Therefore, the correct answer is 'D) Currency notes and demand deposits' as they are the forms of money proper that are widely accepted as a medium of exchange in the economy.