Economics · Macroeconomics

The RBI calculates four components of monetary aggregates: M1, M2, M3, and M4. Identify the incorrect statement regarding these components:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1M4 consists of M3 plus total deposits with Post Office savings organisations (excluding NSC).
2M3 consists of M2 plus time deposits with the banking system.✓
3M2 consists of M1 plus savings deposits with Post Office savings banks.
4M1 consists of currency and coins with the public, and demand deposits with banks.

Correct answer

M3 consists of M2 plus time deposits with the banking system.

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