Question

= + Net time deposits of commercial banks

• A. $M_1$
• B. $M_2$
• C. $M_3$
• D. $M_4$

Answer 1

Answer: (A), (C)

The correct options are
A $M_1$
C $M_3$

$M_1$= CU + DD, where CU is the currency held by the public and DD is net demand deposits held by commercial banks.

$M_3$= $M_1$+ Net time deposits of commercial banks