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‘In an economy, the… (Class 12 Economics 2026, Q10)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 1 mark · MCQ

CBSE Class 12 Economics 2026: question 10

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section A, question 10, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q10 · 1 mark · MCQMoney and Banking

‘In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at ₹ 1,42,000 crore, ₹ 22,000 crore and ₹ 86,000 crore respectively. The value of Money Supply (M) would be ₹ __________ crore. (Choose the correct option to fill in the blank)

  1. (A)2,50,000
  2. (B)86,000
  3. (C)1,64,000
  4. (D)1,42,000

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which deposits are part of M1: demand or time deposits?

Hint 2

Leave out the ₹ 86,000 crore of time deposits.

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.

  1. M1 = currency held by the public + net demand deposits with banks (+ other deposits with RBI, not given here). Net time deposits belong to the broader measure M3, not M1.

  2. M1 = ₹ 1,42,000 crore + ₹ 22,000 crore = ₹ 1,64,000 crore. Option (C).

    1 mark

Answer: (C) 1,64,000

Where the marks are

  • M1 = currency + net demand deposits (1 mark)

Revise the chapter

  • Chapter: Money and Banking (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Banking, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/1/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.