Which of the following are included in broad money (M 3) in India ? 1. Currency with the public 2.…
In India, broad money \(M_3\) equals \(M_1\) plus time deposits with banks, and \(M_1\) is currency with the public plus demand deposits with banks plus "other deposits"…
Choose your answer
Which of the following are included in broad money (M 3) in India ?
1. Currency with the public
2. Demand deposits with Bank
3. Time deposits with Banks
4. ‘Other deposits’ with RBI
Answer and explanation
Correct answer D
In India, broad money equals plus time deposits with banks, and is currency with the public plus demand deposits with banks plus "other deposits" with the RBI. So all four items are included in . Leaving out the RBI's other deposits is the usual slip, but they are part of and therefore of .
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UGC NET Economics