BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Detailed explanation-1: -M4is the least liquid and M1 is the most liquid measure of money.
Detailed explanation-2: -Money Supply Measure “M1” M1 consists of the most highly liquid assets. That is, M1 includes all forms of assets that are easily exchangeable as payment for goods and services.
Detailed explanation-3: -M1, M2, M3, and M4 were the four monetary aggregates used by the RBI between 1977 and 1998 to calculate the money supply. The idea of reserve money was also used by the central bank. However, in 1998, the measurement criteria were changed. The designations are now M0, M1, M2, and M3.
Detailed explanation-4: -From 1977 to 1998, RBI used four monetary aggregates – M1, M2, M3 and M4 – to measure money supply. The central bank also used the concept of Reserve Money. However, measuring standards changed in 1998. Now, the nomenclature is M0, M1, M2, and M3.