Q. Which of the following is used to denote broad money? 
Answer: M3
Notes: Narrow Money M1 = Currency with the public + Demand Deposits of public in Banks When a third component viz. Post office Savings Deposits is also added to M1, it becomes M2. M2 = M1 + Post Office Savings. Broad Money M3 = Narrow money + Time Deposits of public with banks

6

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