Saturday, 21 January 2017

Types of Money

Types of Money

Currency in circulation + Bankers‘ ‘deposits with the RBI + ‘Other’ deposits with the RBI = Net RBI ‘credit to the Government + RBI credit to the commercial sector + RBI's claims on banks + RBI's net is foreign assets + Govemment’s currency liabilities to the public - RBI's net non-monetary liabilities. 
M1
Currency with the public + Demand deposits with the banking system + 'Other' deposits with the RBI 
M2
M1 + Savings deposits of office savings banks. 
M3
M1+ Time deposits with the banking system
= Net bank credit to the Government + Bank credit to the Commercial sector + Net foreign assets of the banking sector + Government’s currency liabilities to the public - Net non-monetary liabilities of the banking sector. 
M4

M3 +All deposits with post office savings banks (excluding National Savings Certificates)  

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