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Which of the following is used to denote broad money?
  • a)
    M1 
  • b)
    M2
  • c)
    M3
  • d)
    M4
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of the following is used to denote broad money?a)M1b)M2c)M3d)M4C...
Ans.

Narrow Money M1 = Currency with the public + Demand Deposits of public in Banks When a third component viz. Post office Savings Deposits is also added to M1, it becomes M2. M2 = M1 + Post Office Savings. Broad Money M3 = Narrow money + Time Deposits of public with banks.
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Which of the following is used to denote broad money?a)M1b)M2c)M3d)M4Correct answer is option 'C'. Can you explain this answer?
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Which of the following is used to denote broad money?a)M1b)M2c)M3d)M4Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is used to denote broad money?a)M1b)M2c)M3d)M4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is used to denote broad money?a)M1b)M2c)M3d)M4Correct answer is option 'C'. Can you explain this answer?.
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