Question

The Narrow concept of money includes ______

Options

• Cash with the Public

• Deposits with Bank

• Deposits with Post Office

• All of the above

Answer 1

All of the above

Explanation:

M₁ and M₂ are known as narrow money.

M₁ = Currency (notes and coins) with the public + Demand deposits + Other deposits held with the Reserve Bank of India.

M₂ = M₁ + Post Office Saving Deposits