In India, the Reserve Bank of India (RBI) uses different measures of money supply. M₁ is the narrowest measure, including Currency with Public, Demand Deposits with banks, and Other Deposits with RBI. M₂ includes M₁ plus savings deposits with post office savings banks. M₃ includes M₁ plus Net Time Deposits of banks (this is also known as Broad Money). M₄ includes M₃ plus all deposits with post office savings organisations (excluding National Savings Certificates).
Which concept of money supply includes currency, demand deposits with commercial banks, other deposits with RBI, time deposits with commercial banks?
Asked in WBCS Main Paper 5 2021 · Topic: Money & Banking (Money: Functions, Forms, and Measures of Money Supply)
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