Broad money M3 in India consists of M1 plus: MCQ with Answer and Explanation

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Broad money M3 in India consists of M1 plus:

A. government deposits

B. foreign currency reserves

C. time deposits with banks

D. only post office deposits

Answer: Option C

Solution (By JKSSB Mock Tests)

M3 is M1 plus time deposits with banks.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Treasury bills are issued by:

A. State governments only

B. RBI on behalf of the Central Government

C. commercial banks

D. SEBI

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Correct Answer: Option B

Explanation:
Treasury bills are short-term debt instruments issued by the RBI on behalf of the Central Government.

This question belongs to: Economy GK Economy Set 1

Question #2

Internal economies of scale arise due to:

A. government subsidies

B. increase in demand

C. expansion of the firm itself

D. expansion of the industry

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Correct Answer: Option C

Explanation:
Internal economies of scale arise from the expansion of the individual firm itself.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the Indian capital account?

A. Only current account convertibility without any capital flows

B. Complete ban on capital inflows

C. Complete convertibility for all capital transactions

D. Partial convertibility with controls on certain capital flows

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Correct Answer: Option D

Explanation:
India has achieved current account convertibility but maintains a managed and partial capital account convertibility with prudential controls on certain flows.

This question belongs to: Economy GK Economy Set 1

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