Which of the following are included in broad money (M3) in India ? (a) Currency with the public (b)…
In India, broad money (M3) comprises narrow money (M1)—which includes currency with the public (a), demand deposits with banks (b), and 'other' deposits with the RBI…
Choose your answer
Which of the following are included in broad money (M3) in India ?
(a) Currency with the public
(b) Demand deposits with commercial banks
(c) Time deposits with commercial banks
(d) Other deposits with RBI
Answer and explanation
Correct answer D
In India, broad money (M3) comprises narrow money (M1)—which includes currency with the public (a), demand deposits with banks (b), and 'other' deposits with the RBI (d)—plus time deposits with banks (c). Thus all four components (a), (b), (c) and (d) are included in M3.
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RPSC Senior Teacher Grade II