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CUET Economics 2025 PYQs22 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 22 May Shift 1

Money & Banking

past year questions, Macro, CUET Economics 2025 22 May Shift 1

Medium

Match List-I with List-II

List-IList-II
(A). M1(I). Currency held by the public and net demand deposits held by commercial banks
(B). M2(II). M3 + Total deposits with Post Office savings organisations
(C). M3(III). M1 + Net time deposits of commercial banks
(D). M4(IV). M1 + Savings deposits with Post Office savings banks

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Option 1: (A) - (I), (B) - (IV), (C) - (III), (D) - (II) -> The monetary aggregates are hierarchical measures of money supply. M1 is the most liquid form consisting of currency and demand deposits (I). M2 expands M1 by adding Post Office savings deposits (IV). M3 further expands M1 by including time deposits with commercial banks (III). M4 is the broadest measure, adding all Post Office deposits to M3 (II). This hierarchy reflects increasing breadth of liquidity in the economy. -> correct

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(B) M2 = M1 + Savings deposits with commercial banks

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Choose the correct answer from the options given below:

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