Forwarded from Pragati Mentorship Program
Money Supply Measures | RBI | UPSC Prelims + Mains
Understanding M0, M1, M2 and M3 is non-negotiable for UPSC Economics.
This infographic clearly explains Reserve Money, Narrow Money, Intermediate Money and Broad Money, along with their components, liquidity, and policy relevance.
🔹 M0 – High Powered Money (RBI’s direct control)
🔹 M1 – Transactional money (most liquid)
🔹 M2 – M1 + Post Office savings
🔹 M3 – Broad Money (most important for inflation & growth)
📌 Prelims Focus:
✔️ M3 = Broad Money
✔️ M0 × Money Multiplier = M3
✔️ RBI primarily tracks M3 growth
Curated and simplified by Pragati Mentorship to help you revise smartly, not repeatedly.
Stay consistent. Stay conceptual.
UPSC is about clarity, not volume.
#monetarytools #RevisionNotes #ConceptClarity #SmartPreparation #PragatiMentorship #ExamFocused
@pragati_mentorship
Understanding M0, M1, M2 and M3 is non-negotiable for UPSC Economics.
This infographic clearly explains Reserve Money, Narrow Money, Intermediate Money and Broad Money, along with their components, liquidity, and policy relevance.
🔹 M0 – High Powered Money (RBI’s direct control)
🔹 M1 – Transactional money (most liquid)
🔹 M2 – M1 + Post Office savings
🔹 M3 – Broad Money (most important for inflation & growth)
📌 Prelims Focus:
✔️ M3 = Broad Money
✔️ M0 × Money Multiplier = M3
✔️ RBI primarily tracks M3 growth
Curated and simplified by Pragati Mentorship to help you revise smartly, not repeatedly.
Stay consistent. Stay conceptual.
UPSC is about clarity, not volume.
#monetarytools #RevisionNotes #ConceptClarity #SmartPreparation #PragatiMentorship #ExamFocused
@pragati_mentorship
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