Question
Compute M2 supply of money from the following data:
Solution
M1 = Currency Notes and Coins with the people + demand deposits with the banking system (currency and saving deposit accounts) + Other deposits with the RBI = 150000 + 110,000 + 10000 = 270,000 M2 = M1 + Saving deposit with Post Office Saving Bank = 270000 + 37000 = 307000
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