Question

Select the incorrect one/ones from the given list of items using the code given below :
1. 'Narrow Money' and 'Broad Money' are categories of money stocks popularised by the banking industry in India.
2. In 'Narrow Banking' commercial banks are basically doing 'retail banking'.

• A. Only 1
• B. Only 2
• C. 1 and 2
• D. Neither 1 nor 2

Answer 1

Answer: (B)

Only 2

Forwarding 'short-term risk-free' loans is known as 'narrow banking' (this was the suggestion given to the weaker banks of India by the M. Narasimhan Committee.)