2022 · Q51
Which one of the following forms of money supply is considered as the most widely used in the Indian monetary system ?
General KnowledgeIndian Economy
- AM1
- BM2
- CM3
- DM4
Explanation
M3 (broad money: currency with the public plus demand and time deposits) is the most widely used measure of money supply in India. The RBI tracks M3 as its headline monetary aggregate. M1 is narrow money, while M2 and M4 are less commonly cited. Hence M3 is the most widely used.