Option 1 -> Incorrect matching: Places M4 with (A) and M1 with (D), which reverses the actual definitions.
Option 2 -> Correct matching: (A) matches M2, (B) matches M4, (C) matches M1, and (D) matches M3, aligning perfectly with RBI's money supply definitions.
Option 3 -> Incorrect matching: Similar errors as Option 1 with wrong assignments of monetary aggregates.
Option 4 -> Incorrect matching: Completely reverses the hierarchy of money supply measures.
Hence, Option 2: (A) - (II), (B) - (I), (C) - (IV), (D) - (III) -> The correct matching follows the RBI's classification of monetary aggregates: M1 (narrow money) = Currency + Demand Deposits; M2 = M1 + Savings deposits with Post Office; M3 (broad money) = M1 + Net time deposits of commercial banks; M4 (broadest measure) = M3 + Total Post Office deposits. Each level builds upon the previous, expanding from the most liquid (M1) to the broadest measure (M4). -> correct