Explanation:

Pair 1 is correct: Fiat Money is the currency that is issued by the government and is not backed by a physical commodity, such as gold or silver. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government. They do not have intrinsic value like a gold or silver coin (Intrinsic Value refers to the value of metal that the coin contains). Currency notes and coins are called fiat money. They are also called legal tenders, as they cannot be refused by any citizen of the country for settlement of any kind of transaction. Pair 2 is correct: M3 and M4 are known as broad money. M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates) M3 = M1 + Net time deposits of commercial banks. The word ‘net’ implies that only deposits from the public held by the banks are to be included in the money supply. Interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of the money supply. M1 = CU + DD, where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. Demand Deposits are included in the Broad Money. Pair 3 is incorrect: M1 and M2 are known as narrow money. M1 = Currency notes plus coins + Net Demand Deposits held by the commercial banks. M2 = M1 + Savings deposits with Post Office savings banks. Time deposits are not included in the Narrow Money