Thursday 18 April 2013

Money Stock Measures Of India

M1  = Money With the Public + Demand Deposits ( CA SA) of Banks + Other Demand deposits wit RBI.
M2  = M1 + Savings bank deposits with post office.
M3  = M1 + Term deposits ( FD RD ) with the banks.
M4  = M3 + All deposits with the post office.

Broad Money = M3 ( Because of FD and RD )
Narrow Money = M1 ( Because of CA and SA )

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