Which of the following are included in the definition of Narrow Money?<br>1. Currency with the public<br>2. Demand deposits<br>3. 'Other' deposits with Reserve Bank of India<br>4. Banker's deposits with Reserve Bank of India<br>Select the <strong>correct</strong> answer using the code given below:
- A. 1, 2 and 4
- B. 1 and 2 only
- C. 1, 2 and 3 ✓
- D. 3 and 4 only
Correct Answer: C. 1, 2 and 3
Explanation
Narrow money (M1) includes currency with the public, demand deposits in the banking system, and 'other' deposits with the RBI. It is the most liquid part of the money supply.
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