The worked question on this page is original educational practice. It is not represented as a question from an official previous-year examination paper.
01 / UNDERSTANDING
Review the question
Create an original nested-total calculation that tests inclusion rather than recall of a current money-stock figure. Ask whether time deposits were already included before adding a reported subtotal. An original checkpoint is: What is the broader classroom measure when time deposits are added once? Supported answer: 750 units. Explain the decisive fact, then alter one condition and solve again. This is an original practice method, not a claim that the question appeared in an official past paper.
02 / UNDERSTANDING
The concept in context
Broad money and currency are not interchangeable measures; classification must follow the official series definition. A useful study check is to list every included monetary component, then check the statistical definition before comparison. Explain why the method fits the stated facts before applying it to a changed situation.
03 / UNDERSTANDING
A worked learning case
For a simplified classroom aggregate, currency held by the public is 100 and eligible demand deposits are 250. The defined narrow measure is therefore 350. A broader classroom measure adds 400 in eligible time deposits and becomes 750. Adding 350 and 750 would double count the currency and demand deposits already included in both.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
What is the broader classroom measure when time deposits are added once?
Show the answer and reasoning
750 units.
The narrow components total 100 plus 250, or 350. Adding the separate eligible time-deposit component of 400 gives 750. The broader figure already includes the narrow components, so summing the two aggregate totals is invalid. These simplified components illustrate inclusion logic and do not replace official statistical definitions.
Two traps to watch for.
- Adding a broad aggregate to its contained narrow aggregate.
- Comparing monetary series without checking coverage changes.
YOUR TOPIC-SPECIFIC LEARNING MAP
Learn from the attempt
List every included monetary component.
Mark nested aggregates to prevent double counting.
Check the statistical definition before comparison.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- www.ncert.nic.in https://www.ncert.nic.in/textbook/pdf/leec103.pdf
- www.rbi.org.in https://www.rbi.org.in/scripts/DataDefinition.aspx
For RBI preparation, check the current official notice before relying on changing dates, rules or examination requirements.
