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UPSC 1997: The sum of which of the following constitutes Broad Money in India? I. Currency with the Public II. Demand deposits with banks III. Time deposits with banks IV. Other deposits with RBI Choose the correct answer using the codes given below:
(a)I and II
(b)I, II and III
(c)I, II, III and IV
(d)I, II and IV
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Not attemptedCorrect Answer: (c) I, II, III and IV
The Reserve Bank defines M3 (broad money) as M1 (currency with the public + demand deposits with banks + ‘other’ deposits with RBI) plus time deposits with the banking system. Therefore all four components I, II, III and IV together constitute broad money, making option (c) correct. ([rbi.org.in](https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=19232&utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 1997 Indian Economy question?▼
The correct answer is option (c): I, II, III and IV. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Monetary Policy & Money Supply question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1997, GS Paper 1, as Question 17. It falls under Indian Economy > Monetary Policy & Money Supply.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Monetary Policy & Money Supply?▼
UPSC has asked 27 questions from Monetary Policy & Money Supply (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.