Which of the following measures of money supply is least liquid of all?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. M4
- M1 is the most liquid of all the monetary resources.
- M4 is the least liquid for ansactions.
- M3 is the most liquid and is used mostly used for monetary transactions.
- It is also known as aggregate monetary resource.