Money supply refers to the total value of money held by public at a particular point of time. Components of Money Supply (i) $M_1 = \text{It}$ is the first and basic measure of money supply. $M_1 =$ Currency and coins with Public + Demand deposits of commercial banks + Other deposits. (ii) $M_2 = \text{It}$ is the broader concept. $M_2 = M_1 +$ Saving deposits with Post Office Savings Banks (iii) $M_3 =$ Broader concept $M_3 = M_1 +$ Net time deposits with banks. (iv) $M_4 = M_3 +$ Total deposits with post office savings bank (Excluding NSC).