The basic distinction between M1 and M2 is in the:

CA Foundation · Business Economics · MTP · September 2026
The basic distinction between M1 and M2 is in the:
(A) A. Treatment of Post Office Deposit
(B) B. Treatment of time deposits of banks
(C) C. Treatment of saving deposits of banks
(D) D. Treatment of Currency

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Treatment of Post Office Deposit

Topics: Money Market

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