Multiple Choice Questions on Which of the following is not a part of Broad Money in India ........ for General Studies (Level 1) Preparation

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Multiple Choice Questions

Which of the following is not a part of Broad Money in India ........

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Much Appreciated please

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sir! i think money that can easily and at the earliest invested may defined as narrow money. and case and easily available money is that part of same. M3 nad M4 are considered as Broad money because they have TD of Bank and post simultaneously. please guid

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Not in terms of investment but in terms of easily availability in which liquidity is more is defined as narrow money rest is fine

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demand deposits and currency in carculation are also not the broad money

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Broad money does not include the interbank deposits such as deposits of banks with RBI or other banks. At the same time, time deposits of public with all banks including the cooperative banks are included in the Broad Money.

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Broad Money includes public cash, commercial bank demand deposits and net time deposits, and total post office savings deposits. It has a lower liquidity level. M3 and M4 are symbols for broad money. In option 4th the term "Bank deposit with RBI" is incorrect because it is " other deposit with RBI" Note: Other deposits are the deposits held by the RBI of all economic units except the government and banks. OD includes demand deposits of semi-government public financial institutions like IDBI IFCI etc. foreign central banks and governments the International Monetary Fund the World Bank etc.

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