Q. Which of the following are included under Narrow Money?

1. Time deposit with banks
2. Demand deposit with banks
3. Money with public in the form of cash
4. Post office deposit

Select the correct option from the codes given below:
Answer: Only 2 & 3
Notes: Time deposits and Post office deposits are not included in Narrow Money. Narrow Money (M1) consists of demand deposits with banks and currency with the public (cash). Time deposits are part of Broad Money (M3). Post office deposits are not part of Narrow Money due to their lower liquidity.