1.

M0 - Reserve Money
M0 = Currency in Circulation + Bankers' Deposits with RBI + ther !eposits
with RBI
". M1 - #arrow Money
M1 = Currency with pu$lic + De%an! !eposits with the Bankin& syste% +
ther !eposits with RBI
M1 = Currency with the 'u$lic + Current Deposits with the Bankin& (yste% +
De%an! )ia$ilities 'ortion o* (avin&s Deposits with the Bankin& (yste% +
'ther' Deposits with the RBI
+. M"
M" = M1 + ,i%e )ia$ilities 'ortion o* (avin&s Deposits with the Bankin&
(yste% + Certi-cates o* Deposit issue! $y Banks + ,er% Deposits o* resi!ents
with a contractual %aturity o* up to an! inclu!in& one year with the
Bankin& (yste% .e/clu!in& CDs0
M" = Currency with the 'u$lic + Current Deposits with the Bankin& (yste% +
(avin&s Deposits with the Bankin& (yste% + Certi-cates o* Deposit issue! $y
Banks + ,er% Deposits o* resi!ents with a contractual %aturity up to an!
inclu!in& one year with the Bankin& (yste% .e/clu!in& CDs0 + 'ther' Deposits
with the RBI
1. M+ - Broa! Money
M+ = M" + ,er% Deposits o* resi!ents with a contractual %aturity o* over
one year with the Bankin& (yste% + Call2,er% $orrowin&s *ro% '#on-
!epository' 3inancial Corporations $y the Bankin& (yste%
4. M1
M1 = M+ + 5ll !eposits with post o6ce savin&s $anks