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In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks, and Net Time Deposits with Co…

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In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks, and Net Time Deposits with Commercial Banks stand at ₹1,42,000 crore, ₹22,000 crore, and ₹86,000 crore respectively.

The value of Money Supply (M₁) would be ₹ _______ crore.
(Choose the correct option to fill in the blank)

a

2,50,000

b

86,000

c

1,64,000

d

1,42,000

✓ Correct answer: c)

1,64,000

Explanation

\(M1​=Currencyheldbypublic+NetDemandDeposits\\ M1​=1,42,000+22,000\\ M1​=₹1,64,000crore\)

(C) ₹1,64,000 crore

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