Discussion
Narrow money does Not include:
Answer: A
Narrow money (M1) consists of currency (notes and coins) with the public, demand deposits of banks and other deposits with the RBI. Term deposits are time deposits and are included in broad money (M3) and not in M1. The answer is term deposits, option A.
Broad money M3 adds time deposits with banks to M1, which is why term deposits are the item that does not belong in narrow money.
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