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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 ?

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Correct answer C

Under the Reserve Bank of India's monetary aggregates, M2M_2 is defined as M1M_1 plus savings deposits with Post Office savings banks, where M1M_1 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 M2M_2 and are instead added to M1M_1 to form broad money (M3M_3).

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