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)
✓ 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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