Question

    Match the following:

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    A 4 1 3 2 Correct Answer Incorrect Answer
    B 2 3 4 1 Correct Answer Incorrect Answer
    C 3 2 1 4 Correct Answer Incorrect Answer
    D 3 1 4 2 Correct Answer Incorrect Answer
    E 1 2 3 4 Correct Answer Incorrect Answer

    Solution

    M0 (monetary base, reserve money or high-powered money) = Currency in Circulation + Bankers' Deposits with the RBI + 'Other' Deposits with the RBI M1 (narrow money) = Currency with the Public + Demand Deposits with the Banking System + 'Other' Deposits with the RBI M2 = M1 + Time Liabilities Portion of Savings Deposits with the Banking System + Certificates of Deposit issued by Banks + Term Deposits of residents with a contractual maturity of up to and including one year with the Banking System (excluding CDs) M3 (Broad Money) = M2 + Term Deposits of residents with a contractual maturity of over one year with the Banking System + Call/Term borrowings from 'Non-depository' Financial Corporations by the Banking System

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