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GK MCQs Section
Q. Consider the following figures in the context of the "Components of Money Stock":
  1. Currency in Circulation: Rs. 1000
  2. Cash with Banks: Rs. 20
  3. "Other" Deposits with RBI: Rs. 15
  4. "Bankers" Deposits with RBI: Rs. 40
  5. Demand Deposits: Rs. 500
  6. Time Deposits: Rs. 400
Which of the following is the correct figure representing "Broad Money" (M3) in this scenario?
Answer: Rs. 1895
Notes: Broad Money (M3) is calculated as the sum of currency in circulation, demand deposits with the banking system, and time deposits with the banking system. Thus, the correct figure is Rs. 1895 (Currency in Circulation: Rs. 1000 + Demand Deposits: Rs. 500 + Time Deposits: Rs. 400 - Cash with Banks and deposits with RBI not included).
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📌 Question Number: 33 in 65: Money, Banking, and Finance in the above course in App.