{"id":86328,"date":"2025-06-01T03:43:29","date_gmt":"2025-06-01T03:43:29","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86328"},"modified":"2025-06-01T03:43:29","modified_gmt":"2025-06-01T03:43:29","slug":"which-one-of-the-following-forms-of-money-supply-is-considered-as-the","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-forms-of-money-supply-is-considered-as-the\/","title":{"rendered":"Which one of the following forms of money supply is considered as the"},"content":{"rendered":"

Which one of the following forms of money supply is considered as the most widely used in the Indian monetary system ?<\/p>\n

[amp_mcq option1=”M1″ option2=”M2″ option3=”M3″ option4=”M4″ correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2022<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct answer is C. M3 is considered the most widely used measure of money supply in the Indian monetary system.
\n<\/section>\n
\n– The Reserve Bank of India (RBI) tracks several measures of money supply: M1, M2, M3, and M4.
\n– M1 is narrow money (most liquid assets). M3 is broad money.
\n– M3 includes M1 plus net time deposits of commercial banks. It is considered a better indicator of the overall liquidity in the economy and is the measure most commonly used by the RBI for monetary policy purposes.
\n<\/section>\n
\nIn 1998, the RBI introduced new monetary aggregates (NM1, NM2, NM3) and liquidity aggregates (L1, L2, L3) based on the recommendations of the Working Group on Money Supply. However, M3 continues to be the traditional and widely referred measure of money supply in India.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following forms of money supply is considered as the most widely used in the Indian monetary system ? [amp_mcq option1=”M1″ option2=”M2″ option3=”M3″ option4=”M4″ correct=”option3″] This question was previously asked in UPSC CDS-2 – 2022 Download PDFAttempt Online The correct answer is C. M3 is considered the most widely used measure of … <\/p>\n

Detailed SolutionWhich one of the following forms of money supply is considered as the<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1108,1120,1190],"class_list":["post-86328","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1108","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWhich one of the following forms of money supply is considered as the<\/title>\n<meta name=\"description\" content=\"The correct answer is C. M3 is considered the most widely used measure of money supply in the Indian monetary system. - The Reserve Bank of India (RBI) tracks several measures of money supply: M1, M2, M3, and M4. - M1 is narrow money (most liquid assets). M3 is broad money. - M3 includes M1 plus net time deposits of commercial banks. It is considered a better indicator of the overall liquidity in the economy and is the measure most commonly used by the RBI for monetary policy purposes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-forms-of-money-supply-is-considered-as-the\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following forms of money supply is considered as the\" \/>\n<meta property=\"og:description\" content=\"The correct answer is C. M3 is considered the most widely used measure of money supply in the Indian monetary system. - The Reserve Bank of India (RBI) tracks several measures of money supply: M1, M2, M3, and M4. - M1 is narrow money (most liquid assets). 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