Given, Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Cr

Given, Currency with public - Rs. 120000 Crores Demand deposit with banking system - Rs. 200000 Crores Time deposits with banking system - Rs. 250000 Crores Other deposit with RBI - Rs. 300000 Crores Savings deposit of post office savings banks - Rs. 100000 Crores All deposit with post office savings bank excluding NSCs - Rs. 50000 Crores Calculate M2. a. Rs. 570000 Crores b. Rs. 620000 Crores c. Rs. 670000 Crores d. Rs. 720000 Crores Ans – d Solution M1 = currency with public + demand deposit with the banking system + other deposits with RBI M1 = 120000+200000+300000 M1 = 620000 M2 = M1+Savings deposit of post office savings banks So, M2 = 620000+100000 M2 = 720000 Crores