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Banking System and Capital Market Questions and Answers for Competitive Exams

Q.

What is “narrow money”?

[A] The sum of currency in circulation and the demand deposits in banks
[B] The sum of M1 money and the time deposits
[C] The sum of currency in circulation with the public and the cash reserves held by banks
[D] The market value of the stocks held by all the holders excluding the promoters

Answer & Explanation

Answer: Option [A]

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