Broad Money (M3) is one of the standard measures of money supply used by the Reserve Bank of India (RBI). It is a broader measure than M1 and M2. M3 is defined as M1 plus Time deposits with the banking system. M1 includes Currency with the public and Demand deposits with the banking system. Therefore, M3 encompasses all three components listed.
Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money (M3) in India?
Asked in UPPCS Prelims 2002 · Topic: Money & Banking (Money: Functions, Forms, and Measures of Money Supply)
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