Given, Currency with public - Rs. 90000 Crores Demand deposit with banking system - Rs. 180000 Cro

Given, Currency with public - Rs. 90000 Crores Demand deposit with banking system - Rs. 180000 Crores Time deposits with banking system - Rs. 220000 Crores Other deposit with RBI - Rs. 260000 Crores Savings deposit of post office savings banks - Rs. 60000 Crores All deposit with post office savings bank excluding NSCs - Rs. 50000 Crores Calculate M4. a. Rs. 750000 Crores b. Rs. 800000 Crores c. Rs. 810000 Crores d. Rs. 870000 Crores Ans - b Solution : M4 = M3+All deposit with post office savings bank excluding NSCs M3 = M1+Time deposit with banking system M1 = currency with public + demand deposit with the banking system + other deposits with RBI M1 = 90000+180000+260000 M1 = 530000 So, M3 = M1+Time deposit with banking system M3 = 530000+220000 M3 = 750000 Crores So, M4 = M3+All deposit with post office savings bank excluding NSCs M4 = 750000+50000 M4 = 800000 Crores