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    Question

    RBI publishes figures for four alternative measures of

    money supply, viz. M1, M2, M3 and M4. Among these, which are known as Narrow money?
    A M1 and M3 Correct Answer Incorrect Answer
    B M2 and M3 Correct Answer Incorrect Answer
    C M3 and M4 Correct Answer Incorrect Answer
    D M1 and M2 Correct Answer Incorrect Answer

    Solution

    M1 & M2 can be easily M1 & M2 can be easily converted to cash, hence called as Narrow Money. They are the most liquid form.

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