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? Top of Form

1. 1 and 2
2. 1 and 3
3. 2 and 3
4. 1, 2 and 3

Explanation

Option (d) is correct

• Broad Money (M3) in India includes currency with the public, demand deposits with the banking system, and time deposits with banks. It is the most commonly used measure of money supply in India and reflects the total liquidity available in the economy.

Answer: (d) 1, 2 and 3