Which of the following measures of money supply in India is known as 'narrow money'? MCQ with Answer and Explanation

Which of the following measures of money supply in India is known as 'narrow money'?
A. M2
B. M1
C. M4
D. M3
Answer: Option B
Solution (By JKSSB Mock Tests)
M1 is referred to as narrow money and consists of currency with the public, demand deposits with banks, and other deposits with RBI. M3 is broad money.

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Practice More Economy Set 1 Questions

Question #1
The 'GDP at constant prices' in India uses which base year?
A. 2019-20
B. 2004-05
C. 2015-16
D. 2011-12

Correct Answer: Option D


Explanation:
India's GDP constant price series currently uses base year 2011-12.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a stock variable?
A. Government expenditure
B. Capital stock
C. National income
D. Investment expenditure

Correct Answer: Option B


Explanation:
Capital stock is measured at a point of time and is therefore a stock variable.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on digital products such as e-books is:
A. 12%
B. 0%
C. 18%
D. 5%

Correct Answer: Option D


Explanation:
E-books and digital products attract 5% GST.

This question belongs to: Economy GK Economy Set 1