Question

In the RBI’s monetary aggregate framework, M1 is known as Narrow Money due to its high liquidity. Which of the following combinations correctly identifies the components of M1?

A Currency with the public + Savings deposits with Post Office savings banks
B Currency with the public + Demand deposits with the banking system + 'Other' deposits with the RBI
C Currency with the public + Time deposits with the banking system
D Currency with the public + Total deposits with Post Office savings organisations
E M3 – Currency with the public
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