UPSC General Studies Sample Paper General Studies Sample Paper-10

  • question_answer
    Which of the following are included in broad money (M3) in India?
    1. Money with the public.                     
    2. Demand deposit with the banks.
    3. Term deposit with the banks.                
    4. Other demand deposit with RBI.
    Select the correct answer using the codes given below.

    A)  1, 2 and 3        

    B) 1 and 3

    C) (c.) 1, 3 and 4               

    D)  All of these

    Correct Answer: D

    Solution :

    [d] Types of money in the market are M1=Money with the public (currency notes and coinsy)+ Demand deposit of banks (on current and saving bank accounts)+Other demand deposit with the RBI M2=M1+Saving banks deposit with post offices M3=M1+Term deposits with the banks

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