What are the various measurements of money supply ?

1.	What are the various measurements of money supply ?
Answer» There are four alternative measurement of money supply : a) M₁ = C + DD + OD Whose, C = currency held by the public. DD = demand deposits in the bank (net). OD = Other deposits with the RBI. b) M₂= M₁ + Savings deposits with post office savings banks. M₃ = M₁ + (net) time deposits with the banks M₄ = M₃ + total deposits with post office savings Organisation (excluding National Savings Certificate)

Answer»

There are four alternative measurement of money supply :

a) M₁ = C + DD + OD

Whose, C = currency held by the public.

DD = demand deposits in the bank (net).

OD = Other deposits with the RBI.

b) M₂= M₁ + Savings deposits with post office savings banks.

M₃ = M₁ + (net) time deposits with the banks

M₄ = M₃ + total deposits with post office savings Organisation (excluding National Savings Certificate)

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