What are the Measures of Money Supply in India?

What are the Measures of Money Supply in India?

What is the Importance of Measures of Money Supply in India?

What are the Types of Measures of Money Supply in India?

FAQs Regarding Measures of Money Supply in India

Who regulates the money supply? up-arrow

The central bank of every country regulates the money in an economy. In India, the Reserve Bank of India governs the supply of money in an economy. It increases or decreases the supply based on the economic situation.

Which is the most liquid measure of the money supply? up-arrow

M1 is the most liquid measure of the money supply. It consists of most liquid assets that one can easily exchange for payment of goods and services. The liquidity of measures is as follows: M1 > M2 > M3 > M4.

Which is the commonly used measure of money supply in India? up-arrow

M3 is the most commonly used measure of money supply in India. It is also known as broad money and consists of all the components of M1 and net time deposits of all banks.