Which of the following statements is not correct regarding Money Supply?
Ans – (d) Explanation:- It does not include term deposits with the banks and term deposits are not readily available for payments.
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Sushma tried to discharge her debt of ₹ 25,000 by giving one rupee coins which were not accepted because coins are:
Ans – (b) Explanation:- Limited Legal Tender: It refers to that form of legal tender money, which can be paid in the discharge of a debt up to a certain limit. Beyond this limit, a person may refuse to accept…
Which function of money has overcome the problem of lack of double coincidence of wants?
Ans – (b) Explanation:- As a medium of exchange, money has removed the major difficulty of lack of double coincidence of wants in the barter system. It separates the acts of sale and purchase of goods and services and helps…
Which function of money is highlighted in the given statement: ‘It works as common denomination’?
Ans – (b) Explanation: Money as a measure (unit) of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to…
Which function of money has removed the difficulty of contractual and future payments?
Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Identify the function of money which has led to capital formation and economic development of the economy.
Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Which function of money is highlighted when we say: ‘It helps to measure the value of goods and services?
Ans – (c) Explanation:- Money as a measure of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to a…
Which function of money is also known by the name of ‘Unit of Account’?
Ans – (c) Explanation:- Money as a measure of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to a…
Which of the following is not a function of money?
Ans – (b) Explanation:- Price stability is not the function of money. It is the study of macro economics.
With the help of this function of money, a person can buy/sell anything through money (without selling/buying in return)
Ans – (d) Explanation:- As a medium of exchange, money has removed the major difficulty of lack of double coincidence of wants in the barter system. It separates the acts of sale and purchase of goods and services and helps…