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RBI publishes figures of four alternative measures of money supply, viz. M1, M2, M3 and M4. M3 is the most commonly used measure of money supply. It consists of:
A
Money held by the public and net demand deposits held by commercial banks.
B
Money held by the public and net demand as well as time deposits held by the commercial banks.
C
Money held by public + Net demand deposits with banks + Savings deposits with Post office
D
Money held by Public + Net time and term deposits with commercial banks + Total deposits with Post Office Savings Organisation.
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UPSC
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