Arrange the following measures of money supply (monetary aggregates) in increasing order of liquidity.

A. CU + DD where CU is currency held by the public and DD is net demand deposits of banks

B. CU + DD + Savings deposits with Post Office savings banks

C. CU + DD + Net time deposits of commercial banks

D. CU + DD + Net time deposits of commercial banks + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

Question

Accepted Answer

D, C, B, A

Answer

A, B, C, D

Answer

D, B, C, A

Answer

C, B, D, A

List - I (Banking)	List - II (Function)
(A) Commercial Bank	(I) Long term lending rate by RBI
(B) Reserve Bank of India	(II) Short term lending rate by RBI
(C) Bank Rate	(III) Credit creation
(D) Repo Rate	(IV) Lender of last resort

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

Solution