Net Time Deposits of Commercial Banks are constituent of which measures of money supply?
In the Reserve Bank of India's monetary aggregates, narrow money \(\mathrm{M}_1\) consists of currency with the public, demand deposits with banks, and 'other' deposits with…
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Net Time Deposits of Commercial Banks are constituent of which measures of money supply?
Answer and explanation
Correct answer A
In the Reserve Bank of India's monetary aggregates, narrow money consists of currency with the public, demand deposits with banks, and 'other' deposits with the RBI, while . Broad money is defined as , and . Therefore, net time deposits of commercial banks are a constituent of both M3 and M4.
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RPSC Senior Teacher Grade II