From the set of statements given in Column I and Column II, Choose the correct pair of statements:
From the set of statements given in Column I and Column II, Choose the correct pair of statements:
| Column I | Column II |
| (a) Money Supply | (i) Total volume of money held by the government |
| (b) M1 | (ii) Currency and coins with public + Demand Deposits of Commercial Banks + Other Deposits with RBI |
| (c) Barter Exchange | (iii) Exchange of goods for money |
| (d) Demand Deposits | (iv) Legal Tender Money |
Anurag Pathak Changed status to publish December 15, 2023
Ans – (b)
Explanation:-
M1 = Current and coins with public + Demand Deposits of commercial banks + other Deposits with RBI
(a)
The money supply is the sum of
1. current and coins held by the public
2. Demand deposits of the public with commercial banks
(c)
Barter Exchange is the Exchange of only goods for goods.
(d)
Demand Deposits are not legal tender money and can be refused by any citizen as payment against any financial obligation.
Anurag Pathak Changed status to publish December 15, 2023
