Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?

EduRev

All Courses

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

CA Foundation Exam > CA Foundation Questions > Which of the following shows the meaning of t...

Join the Discussion on the App

Which of the following shows the meaning of the term M₃?

a)
M₁ + post office savings deposits
b)
Currency + coins + demand deposits of banks
c)
M₁ + Time Deposits of Banks
d)
None of the above

Correct answer is option 'C'. Can you explain this answer?

FREE This question is part of

Test: Money And Banking - 1

Attempt Test

Attempt this Test

Verified Answer

Which of the following shows the meaning of the term M3?a)M1+ post off...

RBI calculates the four concepts of money supply in India . They are called as Money aggregates or Money stock measures.

M1 (Narrow Money):

At any point of time,money held with the public has two most liquid components:

Currency component- consists of all the notes and coins in circulation.

Demand deposit component- money of the general public with the banks,which can be withdrawn using cheques,ATM’s,withdrawls.

M1= Currency held with the public + Demand deposits of public in the bank+ Other deposits of RBI.

Broad Money:

Narrow Money is the most liquid part of the money supply because the demand deposits can be withdrawn any time. Time deposits on the other hand have a fixed maturity period and cannot be withdrawn before the expiry of this period.

M3= Narrow Money (M1) + Time deposits of public with banks.

M2=Narrow Money (M1) + Post office savings.

M4= M3 + Post Office savings.

View all questions of this test

View all answers Start learning for free

< Previous Question Next Question >

Explore Courses for CA Foundation exam

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Principles and Practice of Accounting

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

View all

Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?

Share with a Friend

Answer this doubt

Question Description
Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 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 shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.

Solutions for Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.

Here you can find the meaning of Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following shows the meaning of the term M3?a)M1+ post office savings depositsb)Currency + coins + demand deposits of banksc)M1+ Time Deposits of Banksd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.

Explore Courses for CA Foundation exam