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  9. Q49

OPSC OCS 2021 · Question 49 of 72

Out of the four concepts of money supply used in India M1, M2, M3 and M4 the Post Office savings are included in:

General Studies

  1. AM1 only
  2. BM3 and M4 only
  3. CM4 only
  4. DM2 and M4 onlyCorrect

Answer: D. M2 and M4 only

Explanation

Reserve Money (M0): It is also known as High-Powered Money, monetary base, base money etc. M0 = Currency in Circulation + Bankers’ Deposits with RBI + Other deposits with RBI It is the monetary base of economy.

Source: OPSC OCS Prelims 2021 GS Paper-I; answers per Apti Plus unofficial key

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