difference between m2 and m4 in money supply
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Difference between m2 and m4 in money supply
Explanation:
money supply meanwhile like bank
Difference between m2 and m4
M4 is great then M2
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M2 = M1 + Savings deposits of post office savings banks
Broad Money (M3)
M4 = M3 + All deposits with post office savings banks
Liquidity of these Measures of Money Supply
The liquidity means how fast an instrument can be converted into cash. The liquidity of these measures are in order M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.
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