Which one among the following money supplies is also known as Narrow Money in the Indian economy?
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 Narrow Money is denoted by M1 and is one of the basic indicators of money supply. It includes the total currency in circulation + demand deposits with banks (eg. savings deposits, current deposits etc) + other deposits with the RBI.