Which of following is not included in M1

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Inter bank deposits
B	Currency and coins with public
C	Other deposits with RBI
D	Demand deposits with banks

Explanation:

Detailed explanation-1: -M1 is a narrow measure of the money supply that includes currency, demand deposits, and other liquid deposits, including savings deposits. M1 does not include financial assets, such as bonds.

Detailed explanation-2: -M1 is a narrow measure of the money supply that includes physical currency, demand deposits, traveler’s checks, and other checkable deposits. M1 does not include financial assets, such as savings accounts, term deposits, and bonds.

Detailed explanation-3: -M1 includes net demand deposits and not gross demand deposits, as net demand deposits do not include inter-banking claims.

Detailed explanation-4: -Answer and Explanation: Credit card balances are not included in M1 because they are not even cash held by individuals, but instead debt to a bank.

There is 1 question to complete.