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:

Question

Option 1: (A), (C), (B), (D)

Option 2: (D), (B), (C), (A)

Option 3: (B), (A), (D), (C)

Option 4: (C), (B), (D), (A)

AfterBoards · Accepted Answer

The answer is '(D), (B), (C), (A)'. View full solution:

List-I	List-II
(A) Buying and selling of bonds	(I) Transaction Motive
(B) Hold money is to carry out expenses	(II) Open Market Operations
(C) The number of times a unit of money changes hands during the unit period	(III) Velocity of circulation
(D) Hold money in terms of bonds	(IV) Speculative Motive

List-I	List-II
(A) Cash Reserve Ratio	(I) Reserves + Loans
(B) Net Worth	(II) Deposits
(C) Assets	(III) Percentage of deposits which a bank must keep as cash reserves with the central bank
(D) Liabilities	(IV) Assets – Liabilities

CUET Economics 2026 13h May Shift 2 PYQs

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