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:
- Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
- Monetary Policy – Objectives, Role, Instruments
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