1.

What are the measures adopted by RBI for supply of money ?

Answer»

Following are the measures adopted by RBI for supply of money:

  1. M1 = C + DD + OD
  2. M2 = M1 + Post office and bank saving account deposits.
  3. M3 = M2 + Net term deposits with commercial banks
  4. M4 = M3 + Total post office savings deposits

Here DD = Demand deposits with commercial and cooperative banks
C = Currency notes and coins with people
OD = Other deposits with RBI.



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