Question

What are the alternative definitions of money supply in India?

Answer 1

There are four alternative measures of money supply in India. These are known as

$M_1,M_2,M_3$ and $M_4$.

$M_1\Rightarrow$ Currency with public + Demand deposits + Other deposits with RBI

$M_2\Rightarrow M_1$ + Saving with post office saving account

$M_3\Rightarrow M_1$ + Net time deposits with banks

$M_4\Rightarrow M_3$ + Total deposits with post office (expect NSC)