Question

in terminology of economics and money demand the term m1 and m2 are known as

Answer 1

Answer:

M1 = currency notes + demand deposits, and M2 means and oneplus savings deposit with post office saving banks. 7) in the terminology of economics and money demand, the terms M3 and M4 are also known as: a) short money.

Answer 2

In the terminology of economics and money demand, they are known as narrow money.

• It's a form of money supply that includes all of the central bank's physical money.
• It is quickly available and may be utilised for immediate expenditure because of its liquidity.
• The cash accumulators are often known as m1, m2, and m3. They are measures of the total cash supply. Thus, -

1. m1 - Covers money in circulation as well as bank deposits,
2. m2 - Covers savings deposits, money market funds and also constituents of m1.