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Consider the following sources
  1. Net bank credit to the government.
  2. Bank credit to the commercial sector.
  3. Net foreign exchange assets of the banking system.
Which of the sources given above is / are the major sources of the 'Broad Money'  in the India economy ?
  • a)
    Only 2
  • b)
    1 and 3
  • c)
    2 and 3
  • d)
    All of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following sources Net bank credit to the government. Bank...
Broad Money is a measure of the money supply in the system. It includes currency with the public, demand deposits and time deposits with the banks and other deposits with the RBI. 
Basically, Broad Money = Net bank credit to the Govt + bank credit to the commercial sector + Net foreign exchange assets of the banking system + Govt's current liabilities to the public - Net non-monetary liabilities of the banking sector (other than time deposits).
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Consider the following sources Net bank credit to the government. Bank credit to the commercial sector. Net foreign exchange assets of the banking system.Which of the sources given above is / are the major sources of the Broad Money in the India economy ?a)Only 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer?
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Consider the following sources Net bank credit to the government. Bank credit to the commercial sector. Net foreign exchange assets of the banking system.Which of the sources given above is / are the major sources of the Broad Money in the India economy ?a)Only 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer? for Class 5 2024 is part of Class 5 preparation. The Question and answers have been prepared according to the Class 5 exam syllabus. Information about Consider the following sources Net bank credit to the government. Bank credit to the commercial sector. Net foreign exchange assets of the banking system.Which of the sources given above is / are the major sources of the Broad Money in the India economy ?a)Only 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 5 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following sources Net bank credit to the government. Bank credit to the commercial sector. Net foreign exchange assets of the banking system.Which of the sources given above is / are the major sources of the Broad Money in the India economy ?a)Only 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer?.
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