Q. RBI publishes figures for four alternative measures of money supply, viz. $M 1, M 2, M 3$ and $M 4$ . Arrange them in decreasing order of their liquidity:

M 1 > M 2 > M 3 > M 4

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

M 3 > M 2 > M 1 > M 4

No worries! We‘ve got your back. Try BYJU‘S free classes today!

M 4 > M 3 > M 2 > M 1

No worries! We‘ve got your back. Try BYJU‘S free classes today!

M 2 > M 1 > M 4 > M 3

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
$M 1 > M 2 > M 3 > M 4$
Explanation:

$M 1$ is the most liquid measure of money supply, whereas $m 4$ is the least liquid among all. Liquidity refers to the ease with which an asset, or security, can be converted into ready cash that is readily available for investment and spending.

$M 1 = C U + D D (C U =$ currency, $D D =$ Demand Deposits)
$M 2 = M 1 +$ Savings deposits with Post Office savings banks
$M 3 = M 1 +$ Net time deposits of commercial banks
$M 4 = M 3 +$ Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Suggest Corrections

Similar questions

Q. Q. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4. Arrange them in decreasing order of their liquidity:

Q. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4. Arrange them in decreasing order of their liquidity (1st one being the most liquid and last one being the least)

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

Q. A plot of the kinetic energy

(\frac{1}{2} m v^{2})

of ejected as a function of the frequency (v) of incident radiation for four alkali metals

(M_{1}, M_{2}, M_{3}, M_{4})

is shown.
The alkali metals

M_{1}, M_{2}, M_{3}

and

M_{4}

are respectively:

Q. A plot of the kinetic energy

(1 / 2 m v^{2})

of ejected electrons as a function of the frequency (v) of incident radiation for four alkali metals

(M_{1}, M_{2}, M_{3}, M_{4})

is shown below:
The alkali metals

M_{1}, M_{2}, M_{3}

and

M_{4}

are respectively

Join BYJU'S Learning Program

Q. RBI publishes figures for four alternative measures of money supply, viz. M1,M2,M3 and M4. Arrange them in decreasing order of their liquidity:

Q. RBI publishes figures for four alternative measures of money supply, viz. $M 1, M 2, M 3$ and $M 4$ . Arrange them in decreasing order of their liquidity: