As per the recommendations on liquidity aggregates, L1 is formulated as:

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Economics · Money and Banking

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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M3 + All deposits with the Post Office Savings Bank (excluding National Savings Certificates)

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Answer 1

M3 + Public deposits with Non-Banking Financial Companies

Answer 2

M3 + Term deposits with Financial Institutions

Answer 3

M3 + National Savings Certificates (NSC)

Answer 4

M3 + All deposits with the Post Office Savings Bank (excluding National Savings Certificates)

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