In India RBI measures money supply in the form of monetary and liquidity aggregates. Which of the…
Demand deposits, term deposits over one year and certificates of deposit issued by banks are included in broad money, M3. M3 includes demand and time deposits with the…
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In India RBI measures money supply in the form of monetary and liquidity aggregates. Which of the following components are included in M3?
(i) Demand Deposits
(ii) Term Deposits over one year maturity
(iii) Public Deposits of NBFC
(iv) Certificate of deposits issued by Banks
Answer and explanation
Correct answer D
Demand deposits, term deposits over one year and certificates of deposit issued by banks are included in broad money, M3. M3 includes demand and time deposits with the banking system, while public deposits with non-banking financial companies belong to broader liquidity measures.
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Madhya Pradesh SET (MP SET)