The correct answer is Dr. YV Reddy; 1998. Explanation & Key Takeaways: • The Working Group under the chairmanship of Dr. YV Reddy was constituted in 1998. • The group proposed a new intermediate monetary aggregate to be referred to as NM2. • Dr. YV Reddy was a prominent Indian economist and served as the 21st Governor of the Reserve Bank of India. • The proposal for NM2 was part of an effort to refine and improve the country's monetary policy framework. Related Concepts: • Monetary Aggregates: • Monetary aggregates are broad categories measuring the total value of the money supply within an economy. They include various forms of money such as cash, demand deposits, and near money. • They are used by central banks to assess the amount of money circulating within an economy, helping in formulating monetary policy. • Common monetary aggregates include M1, M2, M3, and M4, which represent different levels of liquidity. • Intermediate Monetary Aggregate NM2: • NM2 is an intermediate monetary aggregate proposed to provide a better understanding and control over the monetary supply. • It typically includes cash, demand deposits, and other near money instruments which are less liquid than those in M1 but more liquid than those in M3. • Dr. YV Reddy: • Yaga Venugopal Reddy served as the 21st Governor of the Reserve Bank of India from 2003 to 2008. • He played a crucial role in shaping India's monetary policy and was known for his efforts to maintain financial stability. • He was also involved in various international financial institutions and contributed significantly to economic policy discussions.