Question

Which expression represents M3?

Options

• \[M3 = M1 + \text{Savings deposits with Post Office savings banks}\]

• \[M3 = M4 + \text{Net time deposits of commercial banks}\]

• \[M3 = M1 + \text{Net time deposits of commercial banks}\]

• \[M3 = M2 + \text{National Savings Certificates}\]

Answer 1

M3 is obtained by adding net time deposits of commercial banks to M1. M3 is a measure of broad money.