Broad money is the broadest measure, encompassing narrow money (such as cash and checkable deposits), along with less liquid assets such as certificates of deposit, foreign currencies, money market accounts, marketable securities, Treasury bills and anything else that can be easily converted into cash (but not ...

What is narrow money and broad money?

Also known as M0, narrow money refers to physical money, such as coins and currency, demand deposits, and other liquid assets, that are easily accessible to central banks. Narrow money is a subset of broad money that includes long-term deposits and other deposit-based accounts.

What is broad money class 12?

8. Broad definition of money: A broad definition of money also includes time deposits/ term deposits with the banks or post offices as a component of money. 9. Money Supply: The stock of money held by the public at a point of time, in an economy, is referred to as the money supply.