{"id":86428,"date":"2025-06-01T03:46:47","date_gmt":"2025-06-01T03:46:47","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86428"},"modified":"2025-06-01T03:46:47","modified_gmt":"2025-06-01T03:46:47","slug":"which-of-the-following-are-included-in-the-definition-of-narrow-money","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-the-definition-of-narrow-money\/","title":{"rendered":"Which of the following are included in the definition of Narrow Money"},"content":{"rendered":"<p>Which of the following are included in the definition of Narrow Money ?<\/p>\n<ul>\n<li>1. Currency with the public<\/li>\n<li>2. Demand deposits<\/li>\n<li>3. &#8216;Other&#8217; deposits with Reserve Bank of India<\/li>\n<li>4. Banker&#8217;s deposits with Reserve Bank of India<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below :<\/p>\n<p>[amp_mcq option1=&#8221;1, 2 and 4&#8243; option2=&#8221;1 and 2 only&#8221; option3=&#8221;1, 2 and 3&#8243; option4=&#8221;3 and 4 only&#8221; 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-2 &#8211; 2023<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-2-2023.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-2-2023\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and &#8216;Other&#8217; Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition.<\/section>\n<section id=\"pyq-key-points\">\n1.  **Currency with the public:** Notes and coins held by the public.<br \/>\n2.  **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts).<br \/>\n3.  **&#8217;Other&#8217; deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF).<br \/>\n4.  **Banker&#8217;s deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. These are included in the definition of M0 (Reserve Money) but not M1 in the standard Indian monetary aggregates.<\/section>\n<section id=\"pyq-additional-information\">The different measures of money supply (M0, M1, M2, M3, M4) represent different degrees of liquidity. M1 and M2 are considered Narrow Money, while M3 and M4 are considered Broad Money. M0 (Reserve Money) is the monetary base, representing the most liquid form of money.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following are included in the definition of Narrow Money ? 1. Currency with the public 2. Demand deposits 3. &#8216;Other&#8217; deposits with Reserve Bank of India 4. Banker&#8217;s deposits with Reserve Bank of India Select the correct answer using the code given below : [amp_mcq option1=&#8221;1, 2 and 4&#8243; option2=&#8221;1 and 2 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following are included in the definition of Narrow Money\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-the-definition-of-narrow-money\/#more-86428\">Detailed Solution<span class=\"screen-reader-text\">Which of the following are included in the definition of Narrow Money<\/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":[1088],"tags":[1105,1120,1190],"class_list":["post-86428","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1105","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 the definition of Narrow Money<\/title>\n<meta name=\"description\" content=\"In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and &#039;Other&#039; Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition. 1. **Currency with the public:** Notes and coins held by the public. 2. **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts). 3. **&#039;Other&#039; deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF). 4. **Banker&#039;s deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. These are included in the definition of M0 (Reserve Money) but not M1 in the standard Indian monetary aggregates.\" \/>\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-the-definition-of-narrow-money\/\" \/>\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 the definition of Narrow Money\" \/>\n<meta property=\"og:description\" content=\"In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and &#039;Other&#039; Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition. 1. **Currency with the public:** Notes and coins held by the public. 2. **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts). 3. **&#039;Other&#039; deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF). 4. **Banker&#039;s deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. These are included in the definition of M0 (Reserve Money) but not M1 in the standard Indian monetary aggregates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-the-definition-of-narrow-money\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:46:47+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 the definition of Narrow Money","description":"In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and 'Other' Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition. 1. **Currency with the public:** Notes and coins held by the public. 2. **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts). 3. **'Other' deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF). 4. **Banker's deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. These are included in the definition of M0 (Reserve Money) but not M1 in the standard Indian monetary aggregates.","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-the-definition-of-narrow-money\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following are included in the definition of Narrow Money","og_description":"In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and 'Other' Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition. 1. **Currency with the public:** Notes and coins held by the public. 2. **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts). 3. **'Other' deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF). 4. **Banker's deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. These are included in the definition of M0 (Reserve Money) but not M1 in the standard Indian monetary aggregates.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-the-definition-of-narrow-money\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:46:47+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-the-definition-of-narrow-money\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-included-in-the-definition-of-narrow-money\/","name":"Which of the following are included in the definition of Narrow Money","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:46:47+00:00","dateModified":"2025-06-01T03:46:47+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"In India, Narrow Money (M1) is defined by the Reserve Bank of India as the sum of Currency with the Public, Demand Deposits with the Banking System, and 'Other' Deposits with the Reserve Bank of India. The components listed in options 1, 2, and 3 align with this definition. 1. **Currency with the public:** Notes and coins held by the public. 2. **Demand deposits:** Deposits held by the public with commercial banks and co-operative banks that are withdrawable on demand (e.g., savings accounts, current accounts). 3. **'Other' deposits with Reserve Bank of India:** Demand deposits with RBI of entities other than banks and the government (e.g., deposits of quasi-government institutions, international financial institutions like IMF). 4. **Banker's deposits with Reserve Bank of India:** Deposits of commercial banks with the RBI, which form a part of the reserves maintained by banks. 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