Which of the following denotes currency with the public?

Correct option is D

The correct answer is (d) M1.
· M1 refers to the most liquid components of the money supply and includes currency with the public (notes and coins held by the public), demand deposits in banks (such as checking accounts), and other deposits with the central bank that can be easily converted to cash.
Information Booster:
· M2: Includes M1 along with savings deposits, post office savings, and time deposits that are less liquid.
· M3: Includes M2 plus large time deposits, larger liquid assets, and other deposits.
· M4: Includes M3 along with other forms of savings and deposits, such as post office savings deposits, making it the broadest measure of the money supply.