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CBSE Class 12-commerce Answered

What are the four alternative methods to measure supply of money?

Asked by Topperlearning User | 18 Apr, 2016, 10:57: AM
Expert Answer

Measures of supply of money are as follows:

i. M1 = CU + DD, where CU is currency held by public and DD demand deposits with banks.

ii. M2 = M1 + Savings Deposits with Post Office savings bank

iii. M3 = M1 + Net time deposits of commercial banks

iv. M4 = M3 + Total Deposits with Post Office savings organisation which excludes National savings Certificates.

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