The elements given below are some of the parts of the M4

Solution

The four measures of money supply are: ·       M1 = C + DD + OD ·       M2 = M1 + Saving deposits with the post office saving banks ·       M3 = M1 + Time deposits with the Banks ·       M4 = M3 + Total deposits with the post office saving organizations The new measures of money supply are: ·       NM1 = C + DD + OD ·       NM2 = NM1 + Short-term time deposits of residents (including and up to the contractual maturity of one year) NM3 = NM2 + Long-term time deposits of residents + Call/Term funding from financial institutions.  M3 and M4 are broad measures of money supply whereas M1 and M2 are narrow measures of money supply.