Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 1, 2 and 3
Concept & Option Breakdown
Standard Reference VerifiedBroad Money ($M_3$) in India comprises:
- Currency with the public
- Demand deposits with the banking system
- Time deposits with the banking system
'Other deposits with RBI' is traditionally treated as a component of High-Powered/Reserve Money ($M_0$), and under standard UPSC classifications, $M_3$ is identified with items 1, 2, and 3.
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