Which measure of money supply is least liquid among the following?
Which measure of money supply is least liquid among the following?
Solution
✅ Correct Option: 4
Liquidity declines as we move from M1 to M4. M1 is the most liquid (currency plus demand deposits), while M4 includes total post office deposits, which are the hardest to convert quickly into cash. Hence M4 is the least liquid measure.
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