Post office saving deposit is part of 

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 organisations 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