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    Question

    Post office saving deposit is part

    of
    A M1 Correct Answer Incorrect Answer
    B M2 Correct Answer Incorrect Answer
    C Mθ Correct Answer Incorrect Answer
    D M3 Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    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. 

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