The term M³ comprises M¹ together with deposits on deposit account held by?

A. banks only
B. discount houses only
C. banks and discount houses
D. banks, discount houses and stock, exchanges

Correct Answer: Option C

C. banks and discount houses

Explanation

The money supply consists of M¹ and M³. M³ is a measure in money supply. M³; This is M¹ plus deposits on deposit account held by barks and discount houses.