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The word 'net' implies that _____________ are to be included in money supply.
Only deposits of the public held by the banks
Savings deposits with Post Office savings banks
Total deposits with organizations
None of these
Option (1) is correct. Explanation: In money supply, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word 'net implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply.
By: Parvesh Mehta ProfileResourcesReport error
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