M₂ is one of the measures of money supply. M₂ is the sum of M₁ + _______________

Correct option is A

The correct answer is (a) saving deposits with post office
• The total money in circulation among the public at a specific point is known as money supply, encompassing currency, printed notes, deposits, and other liquid assets.
• The Reserve Bank of India reports four measures: M1, M2, M3, and M4.
• M1 = CU (currency) + DD (net demand deposits) + Other deposits with the RBI
• M2 = M1 + Savings deposits with Post Office savings banks
• M3 = M1 + Net time deposits of commercial banks
• M4 = M3 + Total deposits with Post Office savings organizations (excluding National Savings Certificates)