Which of the following is an adequate definition of broad money?

Question

Quizplus · Accepted Answer

Broad money is a measure of the total amount of money held by the private sector in an economy, including both physical currency and deposits in bank accounts. M3 is a measure of the total amount of money in an economy, including all forms of money held by the private sector, such as currency, bank deposits, and non-deposit borrowings from financial intermediaries. The exclusion of holdings of currency and bank deposits by certain types of financial institutions in the formula for M3 in option C is appropriate as these institutions do not represent the broader private non-bank sector.

Which of the Following Is an Adequate Definition of Broad