Press Enter

Share with your friends and help them crack UPSC!

Or Share on

Answer

Correct Option is 1, 2 and 3

Justification: A monetary base is the total amount of a currency that is either in general circulation in the hands
of the public or in the commercial bank deposits held in the central bank's reserves. This measure of the money
supply typically only includes the most liquid currencies; it is also known as the "money base."
Therefore, the total currency supply, including other components of money supply, is included in monetary base.
It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and
deposits held by the Government of India and commercial banks with RBI.

Get access to all of our verified questions