Which of the following is/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: [B] Only 2 & 3

Time deposit and Post office deposit are not a part of narrow money because they are less liquid in market. They are part of the broad money. Post office saving deposit is long term deposit with maturity period of 6 years. Post office also provides time deposits for 1, 2, 3, 5 years without any tax benefit

This question is a part of GKToday's Integrated IAS General Studies Module