Which is the most liquid measure of money supply?

M_{1}

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M_{2}

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M_{3}

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M_{4}

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Solution

The correct option is A $M_{1}$

Money Supply Measure “M1” M1 consists of the most highly liquid assets. That is, M1 includes all forms of assets that are easily exchangeable as payment for goods and services. It consists of coin and currency in circulation, traveler's checks, demand deposits, and other checkable deposits.

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Similar questions

Q. Q. RBI publishes figures for four alternative measures of money supply, viz.

M 1, M 2, M 3

and M4. Arrange them in decreasing order of their liquidity:

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

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)

Consider the following statements related to money supply:-

Which of the above statements are incorrect?

2 and 3 only
2, 3 and 4 only
1, 2 and 4 only
1, 2 and 3 only

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