M3 and M4 are known as money ........

Economics (CUET) Money and banking

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M₃ and M₄ are known as________money.

Broad

Narrow

Both (1) and (2)

None of these

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Explanation:

Option (1) is correct.
Explanation: M₄ and M₃ are known as broad money. M₃ M1 + Time deposits of all commercial banks and co-operative banks (excluding interbank time deposits). M1 = M3
+ Total deposits with the Post Office Saving Organisation (excluding National Saving Certificate). These measures of money supply are called broad money as they includes less
liquid assets.