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Question
Which of the following is not included in the narrow definition of money supply?
Options
Currency with the public
Demand deposits
Time deposits
All of these
MCQ
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Solution
Time deposits
Explanation:
The narrow definition of money supply (usually referred to as M1) includes currency with the public and demand deposits (like current and savings accounts). Time deposits (like fixed deposits) are not included, as they are not readily spendable.
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