'The currency drain ratio for m1 is lesser than for m2, and the banks' reserve ratio for m1 is greater than for m2. Read below about currency drain ratio.
Currency drain ratio is the percentage of banknotes that households keep in form of cash rather than depositing in a bank. It is the amount of cash a person holds and the amount of money she maintains in readily accessible bank accounts, such as checking accounts.
Therefore, the correct answer is as given above.
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