Macro

Money & Banking

Medium

Which of the following are correct about money measures?

(A) M1 = CU + DD

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

(C) M3 = M1 + Net time deposits of commercial banks

(D) M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 1

According to NCERT: M1 = CU + DD; M2 = M1 + savings deposits with Post Office savings banks; M3 = M1 + net time deposits of commercial banks; and M4 = M3 + total deposits with Post Office savings organisations, excluding National Savings Certificates.

Therefore, A, C and D are correct. B is incorrect because it says savings deposits with commercial banks instead of Post Office savings banks. Hence, Option 1 is correct.

2025: 22 May Shift 1

Match List-I with List-II

List-I	List-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:

2025: 3 June Shift 1

Mr. Kishore, an economics teacher, was explaining the concept of 'minimum percentage of total deposits to be kept by any commercial bank with the Central bank of the country, as per norms and statute prevailing in the country'.

From the following, choose the correct alternative which specifies towards the concept explained by him:

2025: 13 May Shift 2

Arrange the following money measures into their high to low liquid form.

(A) M4

(B) M2

(D) M3

Choose the correct answer from the options given below:

2023: 20 June Shift 1

A fall in Bank rate can increase the ________ .

2025: 13 May Shift 2

How much total credit creation can bank creates with Cash Reserve Rato of 20% when bank's reserves are Rs. 1000.

2023: 28 May Shift 2

The RBI can influence money supply by changing __________ at which it gives loan to the commercial Banks.

Solution

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