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Which among the followings falls under “Broad Money”?
1. National Savings Certificates
2. Net time deposits of Commercial Banks.
3. Net demand deposits held by Commercial Banks.
4. Currency (notes plus coins) held by the public
1. National Savings Certificates
2. Net time deposits of Commercial Banks.
3. Net demand deposits held by Commercial Banks.
4. Currency (notes plus coins) held by the public
Q. Choose the correct ones:
- a)1 and 3 only
- b)1, 2 and 3 only
- c)2, 3 and 4 only
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which among the followings falls under “Broad Money”?1. Na...
RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4. They are
defined as follows
M1 = CU + DD
M2 = M1 + Savings deposits with Post Office savings
banks
M3 = M1 + Net time deposits of commercial banks
M4 = M3 + Total deposits with Post Office savings
organisations (excluding National Savings
Certificates)
defined as follows
M1 = CU + DD
M2 = M1 + Savings deposits with Post Office savings
banks
M3 = M1 + Net time deposits of commercial banks
M4 = M3 + Total deposits with Post Office savings
organisations (excluding National Savings
Certificates)
Most Upvoted Answer
Which among the followings falls under “Broad Money”?1. Na...
Understanding Broad Money
Broad money is a key concept in economics that represents the total amount of money in circulation within an economy. It includes various forms of money that can easily be converted into cash or are already in cash form.
Components of Broad Money
1. National Savings Certificates
- These are financial instruments issued by the government to encourage savings among the public. They are considered part of broad money as they are a liquid asset that can be converted into cash.
2. Net Time Deposits of Commercial Banks
- Time deposits are funds that are held in a bank account for a fixed period. They can be withdrawn after maturity and are included in broad money because they represent savings that can contribute to the money supply.
3. Net Demand Deposits Held by Commercial Banks
- Demand deposits are funds held in accounts that can be withdrawn at any time without prior notice. These are a crucial part of the money supply and fall under broad money as they are available for immediate use.
4. Currency (Notes Plus Coins) Held by the Public
- This is the most liquid form of money and includes all physical cash in circulation. It is a fundamental component of broad money and is essential for day-to-day transactions.
Conclusion
Given that all four options contribute to the total money supply in an economy, the correct answer is option 'D' (All of the above). Each of these components plays a vital role in defining broad money, reflecting the various forms of financial assets that can be quickly accessed or converted into cash.
Broad money is a key concept in economics that represents the total amount of money in circulation within an economy. It includes various forms of money that can easily be converted into cash or are already in cash form.
Components of Broad Money
1. National Savings Certificates
- These are financial instruments issued by the government to encourage savings among the public. They are considered part of broad money as they are a liquid asset that can be converted into cash.
2. Net Time Deposits of Commercial Banks
- Time deposits are funds that are held in a bank account for a fixed period. They can be withdrawn after maturity and are included in broad money because they represent savings that can contribute to the money supply.
3. Net Demand Deposits Held by Commercial Banks
- Demand deposits are funds held in accounts that can be withdrawn at any time without prior notice. These are a crucial part of the money supply and fall under broad money as they are available for immediate use.
4. Currency (Notes Plus Coins) Held by the Public
- This is the most liquid form of money and includes all physical cash in circulation. It is a fundamental component of broad money and is essential for day-to-day transactions.
Conclusion
Given that all four options contribute to the total money supply in an economy, the correct answer is option 'D' (All of the above). Each of these components plays a vital role in defining broad money, reflecting the various forms of financial assets that can be quickly accessed or converted into cash.
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Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for Defence 2025 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Defence 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for Defence 2025 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Defence 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Which among the followings falls under “Broad Money”?1. National Savings Certificates2. Net time deposits of Commercial Banks.3. Net demand deposits held by Commercial Banks.4. Currency (notes plus coins) held by the publicQ. Choose the correct ones:a)1 and 3 onlyb)1, 2 and 3 onlyc)2, 3 and 4 onlyd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Defence.
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