Question

M₄ = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).

Options

• M₁

• M₂

• M₃

• None of these

Answer 1

M₄ = M₃ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).

Explanation:

The M₄ is the RBI's broadest measure of money supply. It encompasses all parts of M₃ as well as the savings of the country's post office banks. It is the least liquid of all the measurements. M₄ = M₃ + Post Office savings.