BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
|
|
|
|
|
|
|
|
|
Both
|
Detailed explanation-1: -M3 is broad money. M3 = M1 + Time deposits with the banking system. M2 = M1 + Savings deposits of post office savings banks. M1 = Currency with public + Demand deposits with the Banking system (savings account, current account).
Detailed explanation-2: -M1, M2, M3, and M4 were the four monetary aggregates used by the RBI between 1977 and 1998 to calculate the money supply. The idea of reserve money was also used by the central bank. However, in 1998, the measurement criteria were changed. The designations are now M0, M1, M2, and M3.
Detailed explanation-3: -Narrow money is a way of measuring and categorizing the money supply within an economy. It includes particular kinds of money that are highly liquid. The money supply is typically through an “M” scale, where M0 includes the narrowest forms, and M4 includes the broadest forms – M0/M1/M2/M3/M4.
Detailed explanation-4: -MO is included in both M1 and M2. MO is the total amount of paper money and coins in circulation, plus the current amount of central bank reserves.