If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

The money supply in an economy can be measured using different aggregates, such as M1, M2, M3, and M4.

M1 is defined as C + DD + OD, where:

• C = Currency held by the public (excluding government and banks).
• DD = Net Demand Deposits with banks (deposits of the public).
• OD = Other Deposits with the RBI (held by individuals and institutions like IMF).

M3 is a broader measure of money supply and is defined as M1 + TD, which equals C + DD + OD + TD, where TD represents Time Deposits.

Withdrawing cash from a Demand Deposit Account involves a transfer of funds from the 'DD' component to the 'C' component. In this specific scenario, while 'DD' decreases by ₹ 1,00,000, 'C' increases by the same amount.

Therefore, the aggregate money supply (M1 or M3) remains unchanged.

Hence, option (d) is the correct answer.