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    Savings deposits with Post Office savings banks are included in which measure of money supply?
    Question

    Savings deposits with Post Office savings banks are included in which measure of money supply?

    A.

    M1

    B.

    M4

    C.

    M2

    D.

    M3
     

    Correct option is C

    Savings deposits with Post Office savings banks are included in the measure of money supply known as M2.
    M2 includes all the components of M1 (which is a narrow measure of money supply that includes currency in circulation, demand deposits, and other checkable deposits) as well as certain types of time deposits, savings deposits, and money market mutual funds. Savings deposits with Post Office savings banks fall under the category of time deposits in M2.
     

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