Introduction Types of Money in Modern Economy with Banking System M1: Currency and Notes(issued by central bank), also called high powered money or monetary base checkable deposit M2: Non-checkable saving deposit etc M3: Large time deposit Note: MI is the most liquid money followed by m2 and M3Introduction • Types of Money in Modern Economy with Banking System: – M1: • Currency and Notes (issued by central bank), also called high powered money or monetary base. • checkable deposit. – M2: Non-checkable saving deposit etc. – M3: Large time deposit Note: M1 is the most liquid money followed by M2 and M3