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Question
In India saving deposit of post office saving banks are included in _______ money supply.
In India saving deposit of post office saving banks are included in _______ money supply.
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Solution
The correct option is C M2
Money supply refers to the total stock of money of all types (currency as well as demand deposits) held by the people of a country at a given
point of time.
Money supply is measured in several ways which includes M1, M2, M3
and M4 measurement of money supply. Every measurement has its own
definition with different components varying from most liquid to most rigid
form.
In India, savings deposit of post office savings banks are included in M2 measurement of money supply which makes it a little rigid then the M1 measurement.
Money supply refers to the total stock of money of all types (currency as well as demand deposits) held by the people of a country at a given point of time.
Money supply is measured in several ways which includes M1, M2, M3 and M4 measurement of money supply. Every measurement has its own definition with different components varying from most liquid to most rigid form.
In India, savings deposit of post office savings banks are included in M2 measurement of money supply which makes it a little rigid then the M1 measurement.
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