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M1 = CU + DD.  M2 = M1 + Savings deposits with Post Office savings banks.

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in Money and Banking by (25.6k points)

M1 = CU + DD. 

M2 = M1 + Savings deposits with Post Office savings banks. 

M3 = M1 + Net time deposits of commercial banks. 

M4 = M3 + Total deposits with Post Office savings.

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1 Answer

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M 4and M2 are narrow money. 

M3 and M4 are broad money.

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