Question
Post office saving deposit is part
ofSolution
The four measures of money supply are: ·    M1 = C + DD + OD ·    M2 = M1 + Saving deposits with the post office saving banks ·    M3 = M1 + Time deposits with the Banks ·    M4 = M3 + Total deposits with the post office saving organisations The new measures of money supply are: ·    NM1 = C + DD + OD ·    NM2 = NM1 + Short-term time deposits of residents (including and up to the contractual maturity of one year) NM3 = NM2 + Long-term time deposits of residents + Call/Term funding from financial institutions.Â
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