Components of Money Supply

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				Components of Money Supply
M1	Consists of currency with the public (ie notes & coins in circulation minus cash with the banks)
	plus demand deposits with the bank (deposits which can be withdrawn without notice) plus
	other deposits with RBI (usually negligible). Also called narrow money
M2	M1	+ saving deposits + Certificate of Deposits (CDs) + term deposits maturing within a year.
M3	M2	+ term deposits with maturity more than a year + term borrowing of banking system. Also
	known as broad money.
L1	M3	+ all Deposits with the Post Office Savings Banks (excluding National Savings Certificates)
L2	L1 + Term Deposits with Term Lending Institutions and Refinancing Institutions (FIs) + Term
	Borrowing by FIs+ Certificates of Deposit issued by FIs; and
L3	L2 + Public Deposits of Non-Banking Financial Companies

CGPCS Notes brings Prelims and Mains programs for CGPCS Prelims and CGPCS Mains Exam preparation. Various Programs initiated by CGPCS Notes are as follows:-

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