Which of the following is considered a component of M1, the narrowest definition of money supply?

CA Foundation · Business Economics · RTP · September 2025
Which of the following is considered a component of M1, the narrowest definition of money supply?
(A) A. Time deposits
(B) B. Currency in circulation
(C) C. Treasury bills
(D) D. Corporate bonds

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Currency in circulation

Topics: Money Market

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