Question

The money supply in the Indian economy is generally measured in one of the following forms.

पर्याय

• Currency (notes and coins) with the public + Demand deposits + Other deposits held with the Reserve Bank of India.

• Currency (notes and coins) with the public + Demand deposits + Other deposits held with the Reserve Bank of India + Post Office saving deposits.

• Currency (notes and coins) with the public + Demand deposits + Other deposits held with the Reserve Bank of India + Time deposits of all commercial banks and co-operative banks (excluding interbank time deposits).

• All of the above

Answer 1

All of the above

Explanation:

In the Indian economy, the money supply is often measured in the following ways:

(i) M₁ = Currency (notes and coins) with the public + Demand deposits + other deposits held with the Reserve Bank of India.

(ii) M₂ = M₁ + Post Office saving deposits

(iii) M₃ = M₁ + Time deposits of all commercial banks and co-operative banks (excluding interbank time deposits).

(iv) M₄ = M₃ + Total deposits with the Post Office Saving Organisation (excluding National Saving Certificate).