Option 1 -> CU (Currency with public) is a component of M1, which is part of M3.
Option 2 -> Interbank deposits are deposits held between banks and are excluded from M3 as they represent intra-banking system transactions.
Option 3 -> Net time deposits of commercial banks are added to M1 to calculate M3.
Option 4 -> Net demand deposits with commercial banks are a component of M1, which is part of M3.
Hence, Option 2: interbank deposits -> M3 is defined as M1 + Net time deposits with commercial banks. M1 includes currency with the public and net demand deposits. Interbank deposits represent funds that banks deposit with each other for clearing and settlement purposes. These are internal banking system transactions and are excluded from money supply measures like M3, which focuses on money available to the public and economic agents outside the banking system. -> correct