{"id":85524,"date":"2025-06-01T03:19:46","date_gmt":"2025-06-01T03:19:46","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85524"},"modified":"2025-06-01T03:19:46","modified_gmt":"2025-06-01T03:19:46","slug":"which-of-the-following-are-included-in-m1-definition-of-money-for-the","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/","title":{"rendered":"Which of the following are included in M1 definition of money for the"},"content":{"rendered":"<p>Which of the following are included in M1 definition of money for the Indian economy?<\/p>\n<ul>\n<li>1. Reserves<\/li>\n<li>2. Currency<\/li>\n<li>3. Time deposits<\/li>\n<li>4. Demand deposits<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 and 3 only&#8221; option2=&#8221;2 and 3&#8243; option3=&#8221;2 and 4&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CDS-1 &#8211; 2024<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-1-2024.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-1-2024\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nC) 2 and 4<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4).<br \/>\n&#8211; The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + &#8216;Other&#8217; Deposits with the RBI.<br \/>\n&#8211; Based on this definition:<br \/>\n    &#8211; 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public.<br \/>\n    &#8211; 2. Currency: Currency notes and coins held by the public are a component of M1.<br \/>\n    &#8211; 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1.<br \/>\n    &#8211; 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1.<br \/>\n&#8211; Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\n&#8211; The M definitions represent different degrees of liquidity. M1 is the most liquid measure. M0 is the monetary base (Currency in Circulation + Banks&#8217; Reserves with RBI). M3 (also known as Broad Money) is M1 + Time Deposits with the banking system, and is the most commonly used measure of money supply in India.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following are included in M1 definition of money for the Indian economy? 1. Reserves 2. Currency 3. Time deposits 4. Demand deposits Select the correct answer using the code given below. [amp_mcq option1=&#8221;1 and 3 only&#8221; option2=&#8221;2 and 3&#8243; option3=&#8221;2 and 4&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option3&#8243;] This question was previously asked &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following are included in M1 definition of money for the\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/#more-85524\">Detailed Solution<span class=\"screen-reader-text\">Which of the following are included in M1 definition of money for the<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1103,1120,1190],"class_list":["post-85524","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1103","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following are included in M1 definition of money for the<\/title>\n<meta name=\"description\" content=\"C) 2 and 4 - In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4). - The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + &#039;Other&#039; Deposits with the RBI. - Based on this definition: - 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public. - 2. Currency: Currency notes and coins held by the public are a component of M1. - 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1. - 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1. - Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following are included in M1 definition of money for the\" \/>\n<meta property=\"og:description\" content=\"C) 2 and 4 - In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4). - The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + &#039;Other&#039; Deposits with the RBI. - Based on this definition: - 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public. - 2. Currency: Currency notes and coins held by the public are a component of M1. - 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1. - 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1. - Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:19:46+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following are included in M1 definition of money for the","description":"C) 2 and 4 - In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4). - The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + 'Other' Deposits with the RBI. - Based on this definition: - 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public. - 2. Currency: Currency notes and coins held by the public are a component of M1. - 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1. - 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1. - Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following are included in M1 definition of money for the","og_description":"C) 2 and 4 - In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4). - The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + 'Other' Deposits with the RBI. - Based on this definition: - 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public. - 2. Currency: Currency notes and coins held by the public are a component of M1. - 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1. - 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1. - Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:19:46+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/","name":"Which of the following are included in M1 definition of money for the","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:19:46+00:00","dateModified":"2025-06-01T03:19:46+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"C) 2 and 4 - In India, the Reserve Bank of India (RBI) defines different measures of money supply (M0, M1, M2, M3, M4). - The definition of M1 is: M1 = Currency with the Public + Demand Deposits with the Banking System + 'Other' Deposits with the RBI. - Based on this definition: - 1. Reserves: These refer to cash reserves held by commercial banks with the RBI. They are part of the monetary base (M0), not M1. M1 is the money supply held by the non-bank public. - 2. Currency: Currency notes and coins held by the public are a component of M1. - 3. Time deposits: These include fixed deposits and recurring deposits. They are less liquid than demand deposits and are included in broader measures of money supply like M2, M3, and M4, but not M1. - 4. Demand deposits: These are deposits held in current and savings accounts that can be withdrawn on demand (e.g., through cheques or ATM withdrawals). They are a component of M1. - Therefore, currency and demand deposits are included in the M1 definition of money for the Indian economy.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-m1-definition-of-money-for-the\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-1","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-1\/"},{"@type":"ListItem","position":3,"name":"Which of the following are included in M1 definition of money for the"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=85524"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85524\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=85524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=85524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=85524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}