Solved UPSC CDS/OTA Question
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Q · Money and Types of MoneyMedium · 45s
Q₇. Which of the following statements about narrow money (M₁) in India is correct?
TopicMoney and Types of Money
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
Every step explained — no skipped algebra.
Narrow money (M₁) = Currency with public + Demand deposits with banks + Other deposits with the RBI.
Final Answer: Option B — It includes demand deposits with banks.