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?Solution
M1 represents the Narrow Money which is the most liquid form of money. It if calculated as: M1 = Currency with the public + Demand deposits with the banking system + ‘Other’ deposits with the RBI · Where Currency with the public means notes and coins, · Demand Deposits include current and savings accounts that can be withdrawn at any time, · Other deposits with the RBI are the deposits from foreign central banks, quasi-government agencies, etc. Note - From Board Money (M3), M1 can be calculated as: M1 = M3 - Time deposits with the banking system
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Problem Figures: ...
Select the figure from among the given options that can replace the question mark (?) in the following series.
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Select the figure from the options that can replace the question mark (?) in the following series.
Select the figure that can replace the question mark (?) in the following series.
