What are the divisions of money supply?

1.	What are the divisions of money supply?
Answer» Money supply is divided into four; M₁ = Currency held with the public + cash Reserves in commercial and Co-operative banks + cash reserves in the RBI. M₂ = M₁ + Money saved in Post office and bank savings Accounts M₃ = M₁ + Time Deposits in Commercial and cooperative banks M₄ = M₃ + Post office savings Money .

Answer»

Money supply is divided into four;

M₁ = Currency held with the public + cash

Reserves in commercial and Co-operative banks + cash reserves in the RBI.

M₂ = M₁ + Money saved in Post office and bank savings Accounts

M₃ = M₁ + Time Deposits in Commercial and cooperative banks

M₄ = M₃ + Post office savings Money .

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