Consider the following statements related to money supply-1- M 3 is broad money because it includes all forms of money-2- M 2 comprises M 1- saving deposits in Banks-3- M 3 comprises M 2- saving net time deposit in commercial banks and post offices-4- M 1 is most liquid while M 4 is least liquid of all money supply-Which of the above statements are incorrect-A- 2 and 3 onlyB- 2-3 and 4 onlyC- 1-2 and 4 onlyD- 1-2 and 3 only

The correct option is D 1, 2 and 3 only (source: NCERT) M1 = Cash+ DD + OD M2= M1+ saving deposits with post office savings banks. M3= M1 + Net time deposit of ...

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Standard XII

Economics

Money Supply

Consider the ...

Question

Consider the following statements related to money supply:-

Which of the above statements are incorrect?

2 and 3 only

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2, 3 and 4 only

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1, 2 and 4 only

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1, 2 and 3 only

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Solution

The correct option is D
1, 2 and 3 only

(source: NCERT) M₁ = Cash+ DD + OD

M₂= M₁+ saving deposits with post office savings banks.

M₃= M₁ + Net time deposit of commercial banks.

M₄ = M₃+ total deposits with post office savings organizations (excluding National Savings Certificate)

M₁+ M₂= Narrow Money

M₃+M₄= Broad Money

From above explanation statements 1, 2 and 3 are incorrect only 4^th statements is correct.

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Similar questions

Q. In money supply, M2 includes both M1 and savings deposits with ________.

Q. In India saving deposit of post office saving banks are included in _______ money supply.

Q. Consider the following statements with respect to’ money supply’ in the economy:

Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Money supply is classified into $M_{1}, M_{2}, M_{3}$ and $M_{4}$ based on:

Q. Q. With reference to Money Supply, which of the following statements is/are correct?Select the correct answer using the codes given below:

Q. मुद्रा आपूर्ति के संदर्भ में, निम्नलिखित में से कौन सा/से कथन सही है/हैं?

M2, M1 और वाणिज्यिक बैंकों के शुद्ध सावधि जमा के योग के बराबर होता है।
M3 को एक व्यापक मौद्रिक सकल के रूप में भी जाना जाता है।
M4 लेनदेन के लिए सबसे अधिक तरल और सबसे आसान है।

नीचे दिए गए कूटों से सही उत्तर चुनिए:

1 and 2 only
केवल 1 और 2
2 only
केवल 2
3 only
केवल 3
1, 2 and 3
1, 2 और 3

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Consider the following statements related to money supply:- Which of the above statements are incorrect?

Consider the following statements related to money supply:-

Which of the above statements are incorrect?