which of the following is the component of M1 measure of money supply
a).Term deposit b). Demand deposits
c). both A and B d). None of these
Dear Student,
The correct answer is Option B (Demand Deposits).
M1 comprises of (i) Currency held with the Public, (ii) Demand Deposits with the Commercial Banks and
(iii) Other Demand Deposits with Reserve Bank of - Public financial Institutions like NABARD
- Foreign Central Banks and Governments
- International financial Institutions like IMF and World Bank
Regards.
The correct answer is Option B (Demand Deposits).
M1 comprises of (i) Currency held with the Public, (ii) Demand Deposits with the Commercial Banks and
(iii) Other Demand Deposits with Reserve Bank of - Public financial Institutions like NABARD
- Foreign Central Banks and Governments
- International financial Institutions like IMF and World Bank
Regards.