Question 39
MediumOriginal questionMoney data for an economy:
| Item | ₹ crore |
|---|---|
| Currency held by the public | 500 |
| Demand deposits with banks | 300 |
| Other deposits with the RBI | 10 |
| Net time deposits with banks | 900 |
| Savings deposits with post office savings banks | 60 |
| Other deposits with post office savings banks | 140 |
What is M3?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
M3 = M1 + net time deposits with banks.
= 810 + 900 = ₹1,710 crore.
Worth noting
₹1,770 crore also adds the post office savings deposits, which belong in M2 and M4, not M3.
- Concept
- Calculating M3
- Typical timeTypical
- 70 s
- Your timeYours
- —
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