Which of the following is not included in M2 measure of money supply in India ?
Under the Reserve Bank of India's monetary aggregates, \(M_2\) is defined as \(M_1\) plus savings deposits with Post Office savings banks, where \(M_1\) comprises currency…
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Which of the following is not included in M2 measure of money supply in India ?
Answer and explanation
Correct answer C
Under the Reserve Bank of India's monetary aggregates, is defined as plus savings deposits with Post Office savings banks, where comprises currency with the public, demand deposits with banks, and other deposits with the RBI (such as deposits of quasi-government and international financial institutions held with the RBI). "Time deposits with Banks." are excluded from and are instead added to to form broad money ().
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RPSC Assistant Professor (College Education)