Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :
Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :
Solution
This is the composition of M2 in India's monetary aggregates: currency with the public, plus net demand deposits with commercial banks, plus savings deposits with post office savings banks.
M1 and M2 together are classified as narrow money, since they capture the most liquid, readily spendable forms of money. M3 and M4, which add time deposits with banks and total post office deposits respectively, are classified as broad money.
"Wide money" and "long money" are not standard terms in monetary economics, so they function purely as distractors here.
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