Which of the following cannot be termed as currency that is issued by the RBI?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Broad Money
The currency issued by the central bank can be held by the public as well as the commercial banks and is called the high powered money, reserve money and the monetary base.
Broad Money refers to M3. While it includes the currency issued by the RBI, it also includes components that the RBI does not "issue" directly, such as:
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Time Deposits (Fixed Deposits) with commercial banks.
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Savings Deposits with banks.