Component of money supply - My Commerce Info

Tuesday, June 28, 2016

Component of money supply

Component of money supply 1. Mo = Reserve Money, it includes Bank deposits with RBI, Currency in circulation and other deposit with ... thumbnail 1 summary

Component of money supply

  • 1. Mo = Reserve Money, it includes Bank deposits with RBI, Currency in circulation and other deposit with Central Bank
  • 2. M1 = Narrow Money, Currency with the Public, Demand deposit with the Banking system, other deposit with the RBI
  • 3. M2 = M1 + Saving deposits of Post Office
  • 4. M3 = Broad Money, M1 + Time deposit with the Banking system
  • 5. M4 = M3 + All deposits with the Post Office excluding NSC

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