Question
Which of the following is included in M1?
Answer: Option C
Answer: (c)
M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.
M0 + M1 - Narrow money - includes coins and notes in circulation and other money equivalents that are easily convertible into cash.
M2 - M1 + short term deposits in banks.
M3 - M2 + long term deposits and money market fund.
M4 - M3 + other deposits.
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Answer: (c)
M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.
M0 + M1 - Narrow money - includes coins and notes in circulation and other money equivalents that are easily convertible into cash.
M2 - M1 + short term deposits in banks.
M3 - M2 + long term deposits and money market fund.
M4 - M3 + other deposits.
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