Multiple choice

Which of the following concept of money supply is called 'Broad Money' in India?

  1. M1

  2. M2

  3. M3

  4. M4
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In India's monetary classification, M3 is formally designated as 'Broad Money'. M3 includes M1 (currency + demand deposits) plus time deposits (fixed deposits, recurring deposits) in banks. M2 and M4 are aggregates used in different countries' monetary systems, but M3 is India's standard broad money measure that captures the most liquid and near-liquid assets in the economy.

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