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M3 (broad money) includes M1 plus:

AGold
BTime deposits with the banking system
CForeign reserves
DBonds
Answer & Solution
Correct answer: B. Time deposits with the banking system
M3 = M1 + Time deposits with the banking system (including FDs, recurring deposits). Most widely used measure for monetary policy purposes. M2 = M1 + savings deposits with Post Office M4 = M3 + all post office deposits.
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