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). 
Mcomprises 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


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