Question
Post office saving deposit is part of
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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