Which of the following is most commonly used measures of money supply, also known as aggregate monetary resources?
Which of the following is most commonly used measures of money supply, also known as aggregate monetary resources?
Solution
✅ Correct Option: 3
M3 (M1 plus net time deposits of commercial banks) is the most commonly used measure of money supply and is also known as aggregate monetary resources or broad money. M1 is narrow money, while M2 and M4 are less commonly used. Hence option 3.
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