The money supply measures, M1 and M2 are also known by which of the following term:
The money supply measures, M1 and M2 are also known by which of the following term:
Solution
✅ Correct Option: 2
M1 (CU + DD) and M2 (M1 + post office savings deposits) are the most liquid measures of money supply and are called narrow money. M3 and M4, which include time deposits, are called broad money.
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