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Question

Consider the following statements
1) Liquidity aggregates (L3) is disseminated once in a quarter in the Indian Monetary System.
2) Among liquidity aggregates , data on L1 and L2 are published monthly by the Indian Government.
Which of the statements given above is / are correct ?

A
Only 1
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B
Only 2
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C
Both 1 and 2
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D
neither 1 nor 2
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Solution

The correct option is B Both 1 and 2
C. Both 1 and 2
L1 and L2 are compiled monthly and L3 on quarterly basis.
L2 L1 : Term deposits with term lending institutions and refinancing
Financial institutions (FIs) + Term borrowing by FIs + Certificates of
deposit issued by FIs.
L3 L2 : Public deposits with non-banking financial companies.

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