Explanation:

M0 and M1, for example, are also called narrow money and include coins and notes that are in circulation and other money equivalents that can be converted easily to cash such as demand deposits held in banks.M2 includes M1 and, in addition, short-term time deposits in banks and certain money market funds, such as post office savings. M3 includes M2 in addition to long-term deposits, such as time deposits. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.