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

1. Aggregate money supply (like M1 or M3) in the economy consists of various components, primarily currency with the public and demand deposits with banks. 2. When you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account, two things happen simultaneously: - The Demand Deposits held by the bank decrease by ₹ 1,00,000. - The Currency held by the public increases by ₹ 1,00,000. 3. The immediate effect on the aggregate money supply is neutral because one component (demand deposits) decreases by the exact amount that another component (currency with the public) increases. 4. Therefore, the transaction changes the composition of the money supply but leaves the total aggregate money supply unchanged.