Question

M₃ and M₄ are known as ______ money.

विकल्प

• Broad

• Narrow

• Both Broad and Narrow

• None of these

Answer 1

M₃ and M₄ are known as Broad money.

Explanation:

Broad money is defined as M₃ and M₄. M₃ = M₁ + all commercial and cooperative banks' time deposits (excluding interbank time deposits). M₄ = M₃ + Total Post Office Savings Organization Deposits (excluding National Saving Certificate). Because they contain less liquid assets, these money supply metrics are referred to as broad money.