Narrow money refers to ________.

M_{1}

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M_{2}

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M_{3}

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M_{4}

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Solution

The correct option is A $M_{1}$
As per the revised definition of M1 as a measure of money stock in India, it can be defined as currency plus demand deposits with commercial banks plus other deposits with RBI.
Since, this definition of money supply is narrow, it is termed as narrow money.

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Similar questions

M 1, M 2, M 3

Money supply is classified into $M_{1}, M_{2}, M_{3}$ and $M_{4}$ based on:

m_{4}

(m_{1} + m_{2}) > (m_{3} + m_{4})

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