M1 = CU + DD. M2 = M1 + Savings deposits with Post Office savings ba – InterviewSolution

InterviewSolution

1.

M1 = CU + DD. M2 = M1 + Savings deposits with Post Office savings banks. M3 = M1 + Net time deposits of commercial banks. M4 = M3 + Total deposits with Post Office savings.

Answer»

M ₄and M₂ are narrow money.

M₃ and M₄ are broad money.

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