What is M3 money?

The M3 money is also known as broad money. The M3 money includes assets that are less liquid than other components of money supply. M3 includes money market fund shares/units and debt securities, deposits with an agreed maturity of up to two years, currency, deposits redeemable at notice of up to three months and repurchase agreements. You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

Further readings:

  1. Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
  2. Monetary Policy – Objectives, Role, Instruments

Related Links

Financial Market – Difference Between Money Market & Capital Market

Black Money: Definition, Sources & Measures to Curb Black Money

Demand and Supply – Demand Curve, Supply Curve & Market Equilibrium (UPSC Economy)

Statutory Liquidity Ratio (SLR) – Definition, Objective & Impact

Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes]

Previous Years Economics Mains Questions 

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