Question
The elements given below are some of the parts of the M4
money supply of Indian economy 聽 (a) Broad money (M3) (b) All deposits with the post office savings bank (c) National savings certificate Choose the correct option which constitute M4Solution
The four measures of money supply are: 路聽 聽 聽 聽M1 = C + DD + OD 路聽 聽 聽 聽M2 = M1 + Saving deposits with the post office saving banks 路聽 聽 聽 聽M3 = M1 + Time deposits with the Banks 路聽 聽 聽 聽M4 = M3 + Total deposits with the post office saving organizations The new measures of money supply are: 路聽 聽 聽 聽NM1 = C + DD + OD 路聽 聽 聽 聽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.聽 M3 and M4 are broad measures of money supply whereas M1 and M2 are narrow measures of money supply.
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197 ___ 32 ___ 16虏 ___ 45 ___聽 15 = 6,557
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