According to the third working group of RBI, NM2+ long-term deposits with bank with maturity over year+call/term borrowing of the banking system is equal to _________.

N M_{1}

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N M_{2}

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N M_{3}

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N M_{4}

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Solution

The correct option is B $N M_{3}$
In the present context, total money stock in India refers to NM3, which is measured as:
$NM3 = Currency + Demand deposits + Time deposits + Call/term borrowings of banks$

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