Question 55
HardOriginal questionA person withdraws ₹10,000 in cash from her savings account (a demand deposit) to keep at home. M1
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Currency with the public rises by 10,000 and demand deposits fall by 10,000.
Both are in M1, so M1 is unchanged; only its form changes.
- Concept
- Moving between parts of M1
- Typical timeTypical
- 100 s
- Your timeYours
- —
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