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 answer is Option B (Demand Deposits).
Explanation - Components of M1 includes [A] Currency with the public,[B] Demand Deposits with the Commercial Banks and
[C] Other Demand Deposits with Reserve Bank of (i) Financial Institutions like NABARD, (ii) Foreign Central Banks and Governments, (iii) International Financial Institutions like IMF.

Regards.
 

  • 0
demand deposit
  • 0
What are you looking for?