Macro

Money & Banking

Medium

Match List-I with List-II

List-I List-II
(A) Currency + Demand Deposits + Savings deposits with Post Office savings banks (I) M4
(B) Currency + Demand Deposits + Net time deposits of commercial banks + Total deposits with Post Office (II) M2
(C) Currency + Demand Deposits (III) M3
(D) Currency + Demand Deposits + Net time deposits of commercial banks (IV) M1

Choose the correct answer from the options given below:

List-I	List-II
(A) Currency + Demand Deposits + Savings deposits with Post Office savings banks	(I) M4
(B) Currency + Demand Deposits + Net time deposits of commercial banks + Total deposits with Post Office	(II) M2
(C) Currency + Demand Deposits	(III) M3
(D) Currency + Demand Deposits + Net time deposits of commercial banks	(IV) M1

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 2

Option 1 -> Incorrect matching: Places M4 with (A) and M1 with (D), which reverses the actual definitions.

Option 2 -> Correct matching: (A) matches M2, (B) matches M4, (C) matches M1, and (D) matches M3, aligning perfectly with RBI's money supply definitions.

Option 3 -> Incorrect matching: Similar errors as Option 1 with wrong assignments of monetary aggregates.

Option 4 -> Incorrect matching: Completely reverses the hierarchy of money supply measures.

Hence, Option 2: (A) - (II), (B) - (I), (C) - (IV), (D) - (III) -> The correct matching follows the RBI's classification of monetary aggregates: M1 (narrow money) = Currency + Demand Deposits; M2 = M1 + Savings deposits with Post Office; M3 (broad money) = M1 + Net time deposits of commercial banks; M4 (broadest measure) = M3 + Total Post Office deposits. Each level builds upon the previous, expanding from the most liquid (M1) to the broadest measure (M4). -> correct

2026: 31 May Shift 1

Which of the following measure of monetary policy can be used to reduce the excess money supply from the economy?

2023: 29 May Shift 2

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which function of central Bank is refered to in the above paragraph.

2025: 28 May Shift 2

When is Demonetisation, a new initiative was taken by the Government of India?

2025: 31 May Shift 1

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation?

20,000
50,000
10,000
5000

2022: 10 Aug Shift 2

Identify the correct statements regarding money supply

(A) Money supply is a stock concept.

(B) Money supply is a flow concept.

(D) Money supply is the currency held with banks.

(E) Money supply is the concept of real flow.

Choose the correct answer from the options given below :

2025: 27 May Shift 2

When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?

Solution

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