Question

Money supply is divided into

Answer 1

Answer:

M1-M3 components.

Explanation:

In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components

Answer 2

MONEY SUPPLY IS DIVIDED INTO M1, M2, M3, AND M4 COMPONENTS.

• Standard money used in a financial system includes M1, M2, and M3.

• Money is in the form of coins, demand deposits.

• Money supply is a very important factor in the economic development of a country.

• M1 money supply is a narrow measure of money. It is mostly in liquid form.

• M2 is a broader supply of money in India. It includes saving deposits.

• M3 is a broad concept of the money supply. It includes M1 and time deposits with banks.

• It has become a popular measure of the money supply.

• M4 money supply includes M3 and total post office deposits.