What is known as aggregate monetary resources?

The correct answer is M1 + Net time deposits of commercial banks.

Key Poin

• The correct answer to the given question is option 2, which is M1 (currency in circulation + demand deposits with commercial banks) + net time deposits of commercial banks.
•  Aggregate monetary resources refer to the total amount of money available in an economy.
• Option 2, which is M1 (currency in circulation + demand deposits with commercial banks) + net time deposits of commercial banks, is known as aggregate monetary resources.
• M1 + savings deposits with Post Office savings banks (option 1) is known as narrow money.
• M3 + total deposits with Post Office savings organizations (excluding National Savings Certificates) (option 3) is known as broad money.
• Currency (notes plus coins) held by the public and demand deposits held by commercial banks (option 4) are known as the monetary base.

Additional Information

•  M1 + savings deposits with Post Office savings banks is known as narrow money.
• It only includes the most liquid forms of money, i.e., the currency in circulation and demand deposits with commercial banks, along with savings deposits with Post Office savings banks.
• It doesn't include time deposits or other forms of deposits with commercial banks.
•  M3 + total deposits with Post Office savings organizations (excluding National Savings Certificates) is known as broad money.
• It includes all forms of deposits with commercial banks, Post Office savings organizations (excluding National Savings Certificates), and other financial institutions.
• It is a broader measure of money supply than M1 and M2.
•  Currency (notes plus coins) held by the public and demand deposits held by commercial banks is known as the monetary base.
• It is the total amount of currency in circulation and demand deposits held by commercial banks.
• It doesn't include time deposits or other forms of deposits with commercial banks.