Which of the following items is excluded from the concept of money supply in India ?
Coins and currency notes held by commercial banks are excluded from money supply. Money supply measures money held by the public, so banks' own cash holdings are excluded to…
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Which of the following items is excluded from the concept of money supply in India ?
Answer and explanation
Correct answer D
Coins and currency notes held by commercial banks are excluded from money supply. Money supply measures money held by the public, so banks' own cash holdings are excluded to avoid double counting.
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Maharashtra and Goa SET (MH SET)