Narrow Money Meaning

Narrow money is the term used in the context of banking; it refers to that supply of money which is the market like coins, currency, traveller cheques liquid deposit of the central bank. In simple words it refers to all physical money which is circulating in the economy and which is used by the people for doing day to day transactions like buying groceries, vegetables, cloths, electronic items, payment made towards utility bills (electricity, mobile, water etc..) and all such day to day expenses.

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