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SSC CHSL 2023 PYQ — Question 43

SSC CHSL - 09 Aug 2023 - Shift 4 • General Awareness • Q43

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Which of the following is included in the M1 measure of money supply?

A) Currency with Public

B) Time Deposit with the Post Office

C) Demand Deposits with Commercial Banks/RBI of Public Financial Institutions
 

Show answer & explanation

Correct answer: B

Explanation

The correct answer is Option 2 i.e. Both A and C.

The correct options included in the M1 measure of money supply are:
A) Currency with Public and C) Demand Deposits with Commercial Banks/RBI of Public Financial Institutions.

M1 is the most liquid component of the money supply and includes:

  1. Currency held by the public (notes and coins),

  2. Demand deposits with commercial banks and the RBI, and

  3. Other deposits with the RBI.

Time deposits, such as those with post offices, are not part of M1 as they are less liquid.