Given, Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Cr

Given, Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Crores Time deposits with banking system - Rs. 250000 Crores Other deposit with RBI - Rs. 300000 Crores Savings deposit of post office savings banks - Rs. 100000 Crores All deposit with post office savings bank excluding NSCs - Rs. 50000 Crores Calculate broad money M3. a. Rs. 570000 Crores b. Rs. 620000 Crores c. Rs. 670000 Crores d. Rs. 870000 Crores Ans - d Solution : M1 = currency with public + demand deposit with the banking system + other deposits with RBI M1 = 120000+200000+300000 M1 = 620000 M3 = M1+Time deposit with banking system So, M3 = 620000+250000 M3 = 870000 Crores