Ans – (a)
M1 is also known as Transaction Money as it can be directly used for carrying out transactions at will.
M1 is the first and basic measure of money supply. M1 is the most liquid measure of money supply as all its components are easily used as a medium of exchange.
The following are the components
M1 = Currency & Coins with Public + Demand Deposits of Commercial Banks + Other Deposits with RBI