CBSE Class 12 Economics sample paper 2025-26: question 8
From the official CBSE sample question paper for 2025-26, section A, question 8, for 1 mark. Try it first; the hints and our step-by-step solution are below.
Q8 · 1 mark · MCQMoney and Banking
On the basis of the given information, Money Supply (M1) would be ₹ _____ crore. (Choose the correct option)
| S.No. | Components | Amount (in ₹ crore) |
|---|---|---|
| (i) | Currency held by the Public | 320 |
| (ii) | Net Demand Deposits with Commercial Banks | 260 |
| (iii) | Net Time Deposits with Commercial Banks | 200 |
- (A)580
- (B)780
- (C)675
- (D)875
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.
Hints
Open one hint at a time and try again before the next.
Hint 1
Which deposits can be withdrawn by cheque on demand?
Hint 2
Time deposits enter only the broader measures.
Step-by-step solution
Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.
M1 = Currency held by the public + Net demand deposits with banks (+ other deposits with RBI, not given here). Time deposits are not in M1.
- 1 mark
M1 = 320 + 260 = ₹ 580 crore. Option (A).
Answer: (A) 580
Where the marks are
- M1 = 320 + 260; time deposits excluded (1 mark)
Revise the chapter
- Chapter: Money and Banking (notes, formulas, where marks are lost and every past question)
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