For narrow measure of money, which of the following options is incorrect ?
Deposits held by one bank in other banks are excluded from narrow money because they are claims within the banking system. Narrow money comprises currency with the public,…
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For narrow measure of money, which of the following options is incorrect ?
Answer and explanation
Correct answer D
Deposits held by one bank in other banks are excluded from narrow money because they are claims within the banking system. Narrow money comprises currency with the public, demand deposits with the banking system and other deposits with the central bank.
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Maharashtra and Goa SET (MH SET)