GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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M1
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M2
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M3
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M4
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Detailed explanation-1: -Narrow money refers to a category of money supply that includes all the real money held by the central bank. It includes coins and currency, demand deposits, and other liquid assets. Narrow money in the US is known as M1 (M0 + demand accounts).
Detailed explanation-2: -Narrow money is a category of money supply that includes all physical money such as coins and currency, demand deposits, and other liquid assets held by the central bank. In the United States, narrow money is classified as M1 (M0 + demand accounts).
Detailed explanation-3: -M1 measurement of money supply includes only currency which inmost liquid form such as currency held by public in terms of coins and paper notes and demand deposits of the people with the commercial banks. Therefore, M1 is also called narrow money.