Question : Which of the following is included in the M1 measure of money supply?
A) Currency with Public
B) Time Deposit with Post Office
C) Demand Deposits with Commercial Banks/RBI of Public Financial Institutions
Option 1: Both B and C
Option 2: Both A and C
Option 3: Only B
Option 4: Only A
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Correct Answer: Both A and C
Solution : The correct option is Both A and C .
In the M1 measure of money supply, the following is included: Currency with the Public and Demand Deposits with Commercial Banks/RBIs of Public Financial Institutions. M1 includes the most liquid components of the money supply, such as physical currency (coins and paper money) in the hands of the public and demand deposits with commercial banks. Time deposits and other less liquid assets, such as time deposits with the Post Office, are not part of M1 but are part of broader measures of money supply, such as M2 or M3.
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Question : Which of the following statements is true? A) Money Supply is a stock concept B) Currency and Coins with the public are not included in the M3 measure of money supply
Question : Which of the following is not a primary function of commercial banks?
Question : In India, credit creation is done by:
A) Ministry of Finance
B) Reserve Bank of India
C) Commercial Banks
Question : Which measure(s) is the Reserve Bank most likely to take to combat inflation in the economy?
A) Increase repo rate
B) Increase money supply
C) Decrease cash reserve ratio
Question : Which of the following statements is correct regarding the bank reserves? I. These reserves are kept partly as cash and partly in the form of financial instruments. II. Cash Reserves Ratio are deposits that commercial banks keep with the Reserve Bank of India.
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