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Question No. 205Interactive Test Mode
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Q205. Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in India ?

Consider the following:

  1. Currency with the public
  2. Demand deposits with banks
  3. Time deposits with banks Which of these are included in Broad Money(M3) in India ?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2002 • Indian Economy

Correct Answer: Option (D) — 1, 2 and 3

Concept & Option Breakdown

Standard Reference Verified

In monetary aggregates compiled by the RBI:

  • M1 (Narrow Money) = Currency with the public + Demand deposits with the banking system + 'Other' deposits with the RBI.
  • M3 (Broad Money) = M1 + Time deposits with the banking system.

Therefore, M3 includes Currency with the public (1), Demand deposits with banks (2), and Time deposits with banks (3).

Elimination Heuristic & Exam Approach

M3 = Narrow Money (M1) + Time deposits. Since M1 itself contains currency with public + demand deposits, Broad Money contains all three components.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2002 (Q205)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — (d) 1, 2 and 3

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Frequently Asked Questions — UPSC Prelims 2002 Q205

What is the official answer for UPSC Prelims 2002 GS Paper I Question 205 (Indian Economy)?

The official UPSC answer key for this 2002 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "(d) 1, 2 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2002 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

M3 = Narrow Money (M1) + Time deposits. Since M1 itself contains currency with public + demand deposits, Broad Money contains all three components.

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