Question 22
MediumOriginal questionWhich measure of money supply is known as 'broad money'?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
M1 is narrow money: currency with the public plus demand deposits with banks.
M3 adds time deposits with banks to M1, and it is the measure the RBI calls broad money.
M0 is reserve money, the base the RBI itself creates.
- Concept
- Measures of money supply
- Typical timeTypical
- 50 s
- Your timeYours
- —
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