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Money Supply

In terms of m...

Question

In terms of money supply,

Currency note and coins in circulation + Net demand deposits held in commercial banks = _____

A

M1

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B

M2

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C

M3

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D

M4

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Solution

The correct option is A M1
The four different measures used to calculate the total money supply in India are M1, M2, M3, and M4.

M1 represents a country's basic money supply. It encompasses the currency notes and coins in circulation and the net demand deposits held in commercial banks.

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