(d) Both statements 1 and 2 are false. Explanation: $M_1$ includes demand deposits or chequable deposits with commercial banks. $M_1$ does not include assets available with the commercial banks during a particular period of time. $M_1$ money supply includes the most liquid form of money in an economy. It consists of total amount of principal currency in circulation as well as the funds held in demand deposits at commercial banks and other financial institutions.