According to the Reserve Bank of India (RBI), Broad Money (M3) is defined as the sum of M1 and Time Deposits with the banking system. M1 (Narrow Money) is defined as Currency with the Public + Demand Deposits with the Banking System + 'Other' Deposits with the RBI. Therefore, M3 includes all four components listed: Currency with the Public, Demand deposits with banks, Time deposits with banks, and Other deposits with RBI.
The sum of which of the following constitutes Broad Money in India? I. Currency with the Public II. Demand deposits with banks III. Time deposits with banks IV. Other deposits with RBI Choose the correct answer using the codes given below:
Asked in UPPCS Prelims 1997 · Topic: Money & Banking (Money: Functions, Forms, and Measures of Money Supply)
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