______ are known as narrow money.
           

Correct option is A

M1 and M2 are known as narrow money.
 Physical money such as currency and coins known as Narrow money.
 Narrow Money (M1): M1 equals money in circulation plus demand deposits in the banking system (current and savings accounts) plus additional deposits with the Reserve Bank of India (RBI).
 M1 is the sum of Currency with the Public, Demand Deposits with the Banking System, and ‘Other’ Deposits with RBI.
Components of M1:
 Currency with the Public
 Current Deposits with the Banking System
 Demand Liabilities Portion of Savings Deposits with the Banking System
 ‘Other’ Deposits with RBI
Narrow Money (M2): Post Office Savings, Bank Savings Deposits added to M1 equals M2.
 M2 is the sum of Currency with the Public, Current Deposits with the Banking System, Savings Deposits with the Banking System, Certificates of Deposits issued by Banks, Term Deposits of residents with a contractual maturity up to and including one year with the Banking System, and ‘Other’ Deposits with RBI.
Components of M2:
 Currency with the Public
 Current Deposits with the Banking System
 Demand Liabilities of Savings Deposits with the Banking System
 ‘Other’ Deposits with RBI
 Term Deposits of residents with a contractual maturity up to and including one year with the Banking System
 Certificates of Deposits issued by Banks