Answer: demand deposits of banks + ‘Other’ deposits with RBI + sum of currency notes and coins held by the public
Notes: Narrow money, or M1, includes the most liquid forms of money. It consists of demand deposits (checking accounts) in banks, 'other' deposits with the Reserve Bank of India (RBI), and the total currency notes and coins held by the public. M1 is crucial for measuring the money supply in an economy, as it reflects the money readily available for transactions. In contrast, broader measures like M2 and M3 include time deposits, which are less liquid.
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