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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…
Ans – (a) Explanation:- M1 is the first and basic measure of money supply. M1 is the most liquid measure of money supply as all its components are easily used as a medium of exchange.
Ans – (d) Explanation:- Money supply only includes money held by public at a particular point of time. It has only two components: 1. Currency held by the public 2. Demand deposits of the public with commercial banks. It does…
Ans – (c) Explanation:- In India Government and Banking systems are the money-creating sector. The central bank (Reserve Bank of India) creates and issues paper notes of different denominations of ₹ 2,000, 500, 200, 100, etc. The central government mints…
Ans – (a) Explanation:- M1 is also known as Transaction Money as it can be directly used for carrying out transactions at will. M1 is the first and basic measure of money supply. M1 is the most liquid measure of…
Ans – (c) Explanation:- Double coincidence of wants refers to a situation where both buyers and seller are ready to exchange each other’s goods. For example, A can exchange goods with B only when A has what B wants and…
Ans – (c) Explanation: Money supply refers to the stock of money held by the public at a point of time. It has two components: 1. Current held by public 2. demand deposits of public with the commercial banks
Ans – (c) Explanation:- Money supply refers to the stock of money held by the public at a point of time. It has two components: 1. Current held by public 2. demand deposits of public with the commercial banks
Ans – (b) Explanation:- In India, paper notes are unlimited Legal Tender Unlimited Legal Tender: It refers to that form of legal tender money, which can be paid in the discharge of a debt of any amount. Legal action can…
Ans – (b) Explanation:- High-powered money consists of two components: 1. Currency with the public 2. Cash reserves with the banks It does not includes demand deposits of commercial banks.