| Q.16 | Reserve Bank publishes figures for four alternative measures of money supply, viz., M1, M2, M3 and M4. Which of the following definitions is INCORRECT? | |
| Ans | 1. M1 = currency (notes plus coins) held by the public + net demand deposits held by commercial banks | |
| 2. M2 = M1 + savings deposits with Post Office savings banks | ||
| 3. M4 = M3 + total deposits with Post Office savings organisations (excluding National Savings Certificates) | ||
| 4. M3 = M2 + net time deposits of commercial banks |
Correct Ans Provided: 4
