Question

According to traditional measures of Money Supply - M1 = C + ? *


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Answer 1

Explanation:

M1 - Money supply refers to stock of money of all types of held by the people of country at the point of time

M1= C + DD + OD

C - currency held by the public in terms of paper notes and coin

DD - direct deposit held by the public with commercial banks

OD - Other deposit with public financial institution, foreign central bank etc