Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> With respect to Monetary aggregates , M1 consists of which of the following?

1. Currency held by the public.
2. Demand deposits with the bank.
3. Time deposits with the bank.
4. Other deposits with the RBI.

Which of the above is / are correct?

• A. 1,2 and 3 only.
• B. 1,2 and 4 only.
• C. 2,3,and 4 only.
• D. All of the above.

Answer 1

The correct option is B 1,2 and 4 only.

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> M1=Currency held by the public + Demand deposits with the bank + Other deposits with the RBI.

M3= M1 + Time deposits with the bank.