1. Money Supply in India

2. Monetary policy refer to steps taken by RBI to regulate cost and supply of money in order to achieve certain socio Economic objective like price stabilization full employment, exchange regulation and increased economic growth

3. There is no unique measure to money aggregate Money Supply M : M 1 + M 2 + M 3 + M 4

10. Money stock measure ( Rs crores) 15,23,100 2,80,510 M 4 25,970 14,680 Total post office deposit 14,97,130 2,65,830 M 3 10,75,930 1,72,940 Time deposit with banks 4,26,240 97,100 M2 5,040 4,210 Post office saving bank deposit 4,21,200 92,890 M 1 2001-02 1990-91

14. Features of Investment methods in Money Market Sh. Com. Banks,coop. Banks, MF etc Easy Unsecured 2-14 days 0.50 Notice Money Sh. Com. Banks,coop. Banks, MF etc Easy Unsecured 1 day 1 Call Money Open to all Moderate Unsecured 90-180 days 0.25 Commercial Papers Open to all Moderate Secured 46-365 days 0.25 Certificate of deposit (CD) Sh. Com. Banks,coop. Banks, MF etc Reasonable Secured 1-90 days 0.50 Commercial bills Open to all Easy Secured 1-182 days 0.25 182 days treasury bill Participant Liquidity Secured /Unsecured Period Minimum Amount per transaction MM instruments