Commerce Exam > Commerce Questions > One of the measures of money supply isa)N1b)O... Start Learning for Free
One of the measures of money supply is
- a)N1
- b)O1
- c)M1
- d)P1
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer i...
There are several standard measures of the money supply, including the monetary base, M1, and M2. The monetary base is defined as the sum of currency in circulation and reserve balances (deposits held by banks and other depository institutions in their accounts at the Federal Reserve).
Free Test
FREE
| Start Free Test |
Community Answer
One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer i...
Money Supply
Money supply refers to the total amount of money available in an economy at a given point in time. It includes all currency in circulation, demand deposits, and other liquid assets held by individuals and businesses.
M1
M1 is one of the measures of money supply. It represents the most liquid components of the money supply and includes:
- Currency in circulation: This refers to the physical currency, such as banknotes and coins, that is in the hands of the public and not held by banks.
- Demand deposits: Demand deposits are funds held in checking accounts that can be withdrawn by the account holder at any time without prior notice.
- Traveler's checks: Traveler's checks are a form of prepaid checks that can be used as a substitute for cash while traveling.
- Other checkable deposits: This includes deposits in checking accounts that are not demand deposits, such as negotiable order of withdrawal (NOW) accounts.
M1 is considered the narrowest measure of money supply as it includes only the most liquid forms of money that can be readily used for transactions.
Other Options
Option 'A' (N1) and option 'B' (O1) are not recognized measures of money supply.
Option 'D' (P1) is not a commonly used measure of money supply. It is important to note that different countries may use different measures of money supply, but M1 is widely accepted as a key measure in many economies.
Conclusion
The correct answer to the question is option 'C' (M1), as it represents one of the measures of money supply that includes currency in circulation, demand deposits, traveler's checks, and other checkable deposits.
 | Explore Courses for Commerce exam |  |
Top Courses for CommerceView all
Top Courses for Commerce
Question Description
One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? for Commerce 2026 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer?.
One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? for Commerce 2026 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer?.
Solutions for One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer?, a detailed solution for One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice One of the measures of money supply isa)N1b)O1c)M1d)P1Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
| Explore Courses for Commerce exam | |
Top Courses for Commerce
Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
