CA Foundation · Business Economics · Money Market
Given: M1 = ₹12,000 crore; time deposits with banks = ₹18,000 crore; post office savings bank deposits = ₹1,500 crore; total post office deposits excluding NSCs = ₹2,500 crore. Taking M4 = M3 + total post office deposits (excluding National Savings Certificates), and M2 = M1 + post office savings bank deposits, what is the value of M4 minus M2?
M4 minus M2 is ₹19,000 crore. M3 is 30,000, so M4 is 32,500 after adding post office deposits of 2,500. M2 is 12,000 + 1,500 = 13,500. The difference is 32,500 − 13,500 = 19,000, equal to time deposits plus the extra 1,000 of post office deposits.
- A₹19,000 croreCorrect
- B₹20,500 crore
- C₹18,000 crore
- D₹17,000 crore
Explanation
M3 = 12,000 + 18,000 = ₹30,000 crore. M4 = 30,000 + 2,500 = ₹32,500 crore. M2 = 12,000 + 1,500 = ₹13,500 crore. M4 − M2 = 32,500 − 13,500 = ₹19,000 crore. Checking: difference = time deposits 18,000 + (2,500 − 1,500) = 19,000. Using 1,500 for M4 would give ₹18,000 crore, which is wrong.
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