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Question : M2 is one of the measures of the money supply. M2 is the sum of M1+______.

Option 1: saving deposits with the post office

Option 2: National Saving Certificates

Option 3: coins and currency notes

Option 4: demand deposits


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 3rd Jan, 2024

Correct Answer: saving deposits with the post office


Solution : The correct option is saving deposits with the post office.

The two most often used definitions of money are M1 and M2. M1 is made up of traveller's cheques, checkable (demand) deposits, and coins and money in circulation. M2 is equal to M1 plus certificates of deposit, money market funds, savings accounts, and other time deposits.

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