Question

    Which of the following is the most liquid measure of

    money supply?
    A M1 Correct Answer Incorrect Answer
    B M2 Correct Answer Incorrect Answer
    C M3 Correct Answer Incorrect Answer
    D M4 Correct Answer Incorrect Answer
    E M5 Correct Answer Incorrect Answer

    Solution

    Narrow money or M1 is the most liquid form of money supply. It indicates the Currency with the public + Demand deposits with the banking system + ‘Other’ deposits with the RBI.

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