Correct Answer: decreasing the order of liquidity

Solution : The correct option is decreasing the order of liquidity.

The measures of money supply M1, M2, M3, and M4, in that order, indicate a decreasing level of liquidity. M1: This includes the most liquid forms of money. It consists of physical currency (like coins and notes) held by the public and demand deposits (checking accounts) in banks. M2: This includes M1 plus additional forms of money that are not immediately spendable. It encompasses savings deposits, time deposits, and money market funds. M3: This is a broader measure and includes M2 along with large time deposits, institutional money market funds, and other larger liquid assets. M4: This is the broadest measure and includes M3 along with all other financial assets held by the public, including government securities.