2023 · Q31
Which of the following are included in the definition of Narrow Money?
- 1Currency with the public.
- 2Demand deposits.
- 3Other deposits with Reserve Bank of India.
- 4Banker's deposits with Reserve Bank of India.
Select the correct answer using the codes given below.
General KnowledgeIndian Economy
- A1, 2 and 4
- B1 and 2 only
- C1, 2 and 3
- D3 and 4 only
Explanation
Narrow money (M1) = currency with the public + demand deposits with banks + 'other' deposits with the RBI (1, 2, 3). Bankers' deposits with the RBI are part of reserve (base) money, not of M1. Hence 1, 2 and 3.