Economics · Money and Banking
According to the Third Working Group on Money Supply, New Monetary Aggregate M2 is formulated as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1M1 + Total time deposits with the banking system
- 2M1 + Time liability portion of savings deposits with the banking system + Certificates of Deposit issued by banks + Term deposits of residents with a contractual maturity up to and including one year✓
- 3M1 + Total Post Office Deposits
- 4M1 + Saving bank deposits with Post Offices
Correct answer
M1 + Time liability portion of savings deposits with the banking system + Certificates of Deposit issued by banks + Term deposits of residents with a contractual maturity up to and including one year
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