Discussion
Monetization of an economy is measured by the ratio of GDP and:
Answer: B
The monetisation of the economy is measured by the ratio of the money supply to GDP. The broad measure used for this purpose is M3 (broad money), so the degree of monetisation is the ratio of M3 to GDP, and GDP is the other part of the ratio. M1 is narrow money and M2 is a middle measure. The key gives M2, option B, and I could not confirm this choice independently, so the explanation follows the key. Since the item is worded as a ratio of GDP to a money aggregate, broader aggregates give higher measures of monetisation.
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