JKSSB Mock Tests

Which of the following statements is correct is regarding measures of money supply? I. M1 and M2 are known as narrow money. II. M3 and M4 are known as broad money.

A. Only II
B. Both I and II
C. Neither I nor II
D. Only I
Answer: Option B
Solution (By JKSSB Mock Tests Team)
In monetary economics established by the RBI, M1 and M2 are classified as 'narrow money' due to their high liquidity, whereas M3 and M4 are termed 'broad money' as they encompass less liquid assets like bank time deposits.
This Question Belongs to: General knowledge mcqs Economics set 2

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