Which of the following are included in M1 definition of money for the Indian economy? 1. Reserves 2. Currency 3. Time deposits 4. Demand deposits Select the correct answer using the code given below.

CDS 2024 PYQ with Answer — Which of the following are included in M1 definition of money for the…

2024 · Q55

Which of the following are included in M1 definition of money for the Indian economy?

1Reserves
2Currency
3Time deposits
4Demand deposits

Select the correct answer using the code given below.

General KnowledgeIndian Economy

A1 and 3 only
B2 and 3
C2 and 4
D1, 3 and 4

Explanation

In India, narrow money M1 comprises currency with the public (2) and demand deposits with banks (4), plus "other" deposits with the RBI. Bank reserves (1) are not part of money supply held by the public, and time deposits (3) belong to broader aggregates (M3), not M1. The answer is (C).