Sponsor Area

Money And Banking

Question
CBSEENEC12012763

What are various money stock measures?

Solution

Following four measures of money stock are used.
M1 = C + DD + OD
M2 = M1 + Savings deposits in Post Office Saving Banks.
M3 = M1 + Net time-deposits of banks.
M4 = M1 + total deposits with Post Office Saving Organisation.