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6. The difference between narrow money and broad money is
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Answer:
Narrow money is seen as the basic amount of notes and coins and operational deposits at Bank of England. Broad money includes notes and coins but also saving accounts and deposits in a savings account. Broad money can also include Treasury Bills and gilts.
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Answer:
Treatment of time deposits of banks
Explanation:
The basic distinction between the measurements of narrow and broad money is the treatment of time deposits of banks.
Broad money = Narrow money + Time deposits
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