Macro

Money & Banking

Medium

Arrange the following measures of money supply in ascending order of their liquidity.

(A) Currency + Demand Deposits.

(B) M1 + Net time deposits of commercial banks.

(C) M1 + Savings deposits with Post Office savings banks.

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

Choose the correct answer from the options given below:

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

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

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

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

✅ Correct Option: 2

(A) is M1, (B) is M3, (C) is M2 and (D) is M4. Liquidity ranks as M1 > M2 > M3 > M4, since time deposits and post office deposits are less liquid. Ascending order of liquidity (least liquid first) is therefore M4, M3, M2, M1, i.e., (D), (B), (C), (A).

2025: 16 May Shift 1

When was the most recent demonetization undertaken by the government of India?

2025: 29 May Shift 1

Which of the following are major functions of commercial banks?

2026: 20 May Shift 1

Policy tools to control money supply by the RBI are given below. Identify the correct statements.

(A) Persuasion is a qualitative tool of RBI.

(B) RBI influences money supply through open market operation.

(D) Selling of a bond by RBI leads to reduction in quantity of reserves.

Choose the correct answer from the options given below:

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(A) $M_1$	(I) $M_1$ + Net time deposits of commercial banks
(B) $M_3$	(II) Assets - Liabilities
(C) Net Worth	(III) 1/CRR
(D) Money Multiplier	(IV) Currency + Demand Deposit

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Which of the following is the quantitative tool of money supply used by Central Bank?

2025: 2 June Shift 1

A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)