In the context of money supply, M3 is also known as: MCQ with Answer and Explanation

In the context of money supply, M3 is also known as:
A. Broad money
B. Narrow money
C. Reserve money
D. High-powered money
Answer: Option A
Solution (By JKSSB Mock Tests)
M3 is referred to as broad money and includes M1 plus time deposits with banks. Reserve money or high-powered money is the monetary base.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Liquidity Preference' theory of interest was given by:
A. Classical economists
B. Irving Fisher
C. John Maynard Keynes
D. Knut Wicksell

Correct Answer: Option C


Explanation:
Keynes proposed the liquidity preference theory, which states that the rate of interest is determined by the demand for and supply of money, where demand arises from transactions, precautionary and speculative motives.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Fiscal Consolidation' refers to policies aimed at:
A. Only printing money to finance deficits
B. Increasing the fiscal deficit continuously
C. Only increasing tax rates without expenditure reform
D. Reducing the fiscal deficit and improving the sustainability of public finances

Correct Answer: Option D


Explanation:
Fiscal consolidation involves measures to reduce the fiscal deficit and put government debt on a sustainable path through a combination of revenue and expenditure reforms.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'UDAY' scheme was launched by the Ministry of:
A. Power
B. Petroleum
C. Rural Development
D. Finance

Correct Answer: Option A


Explanation:
UDAY was launched by the Ministry of Power for DISCOM financial turnaround.

This question belongs to: Economy GK Economy Set 1