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Question

Choose the correct statement.


A

M2=M3 - Net time deposits

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B

M3=M2 - Post office savings deposits + Net time deposits.

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C

M4= Currency + Deposits - M3

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D

M1= Currency + Deposits - M3

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Solution

The correct option is B

M3=M2 - Post office savings deposits + Net time deposits.


M2=M1 + Savings deposits with Post Office savings banks

M3=M1 + Net time deposits of commercial banks


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