Money supply M1 includes:
Options
ACurrency + Demand Deposits
BM1 + Time Deposits
CCurrency only
DDemand Deposits only
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Money MarketPYQ - Nov 2020 (Inter)Question 145 of 20
All Questions Correct Answer
✅ Option a — Currency + Demand Deposits
All Options:
- ACurrency + Demand Deposits
- BM1 + Time Deposits
- CCurrency only
- DDemand Deposits only
About This Chapter: Money Market
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Money Demand/Supply, Monetary Policy
This chapter covers the monetary system — how money circulates in the economy. Topics include Demand for Money, Supply of Money, Monetary Policy instruments (Repo Rate, CRR, SLR, Open Market Operations), and the role of the Reserve Bank of India in controlling inflation and managing the economy.
View Official ICAI SyllabusExam Strategy Tip
Memorize the RBI's monetary policy instruments and their impacts. Questions often ask about the effect of changing CRR or Repo Rate on money supply.
Key Concepts to Understand
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