What are the 3 categories of money?
Economists differentiate among three different types of money: commodity money, fiat money, and bank money.
What is M3 money?
Definition of. Broad money (M3) Broad money (M3) includes currency, deposits with an agreed maturity of up to two years, deposits redeemable at notice of up to three months and repurchase agreements, money market fund shares/units and debt securities up to two years.
What is M1 M2 M3 money supply India?
M3 is broad money. M3 = M1 + Time deposits with the banking system. M2 = M1 + Savings deposits of post office savings banks. M1 = Currency with public + Demand deposits with the Banking system (savings account, current account).
What are the classification of money?
Some of the major leads under which money has been classified are as follows: (i) Full bodied Money (ii) Representative Full-bodied Money and (iii) Credit Money. Money can be classified on the basis of relationship between the value of money as money and the value of money as a commodity. (iii) Credit money.
What are the 3 properties of money?
To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
What is M1 money in India?
M1 comprises currency outside the banking system, demand deposits with the banking system, and other deposits with the RBI. Currency outside the banking system comprises currency notes issued by the RBI and coins issued by the Government of India less currency notes and coins holdings of the RBI and the banking system.
What is M4 money?
M4: Cash outside banks (i.e. in circulation with the public and non-bank firms) plus private-sector retail bank and building society deposits plus private-sector wholesale bank and building society deposits and certificates of deposit.
What are the types of money?
There are 4 major types of Money :
- Commodity Money.
- Fiat Money.
- Fiduciary Money.
- Commercial Bank Money.
What are the 4 characteristics of medium of exchange?
Characteristics of a Medium of Exchange Common and obtainable. Low preservation cost. Recognizable. Transportable.
What is M3 India?
M3 is a broad monetary aggregate that includes all physical currency circulating in the economy (banknotes and coins), operational deposits in central bank, money in current accounts, saving accounts, money market deposits, certificates of deposit, all other deposits and repurchase agreements.
What is m5 money?
symbol for. (Economics) the amount of money in circulation given by M4 plus building-society deposits.
How is money classified?
What are the 4 characteristics of money?
In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.