Currency means:
Ans – (c) Explanation:- Currency consists of paper notes and coins held by the public. It is the most liquid of all assets and includes coins of denominations of ₹ 10, 5, 2, 1, etc., and paper notes of denominations…
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Demand deposits with Commercial Banks are a part of:
Ans – (a) Explanation:- Money Supply includes 1. Currency with the public 2. Demand deposits of the public with commercial banks High Powered Money includes: 1. Current with the public 2. Cash reserves with the banks
If you have 2 meters cloth and you want wheat against it, then how much wheat you should get. Which drawback of Barter Exchange is highlighted?
Ans – (c) Explanation:- It refers to a lack of a common unit of account. It means, there is no common unit to measure all commodities. In the given case, we have to measure all other commodities with cloth. Again…
____ are termed as Legal Tender Money
Ans – (d) Explanation:- Currency notes are termed as Legal Tender Money. In India, paper notes and coins such as notes of ₹ 10, 20, 50, 100, 500 and coins of ₹ 1, 2, 5, 10 are the legal Tender…
If Harish has a Mobile and he wants a Tablet. Shivam has a Laptop and he wants a Mobile in exchange of laptop, than what problem Harish and Shivam are facing:
Ans – (b) Explanation:- Harish and Shivam do not have what they both have and want simultaneously. Harish wants a tablet but Shivam has a laptop. Shivam wants a mobile but Harish wants a tablet in return. Thus, it is…
____ is the main source of money supply in an economy.
Ans – (c) Explanation:- Central Bank and Commercial Bank are the two main sources of money supply in an economy. Central Bank issues currency in the form of paper and coins. It becomes part of the money supply as currency…
The total stock of money in circulation among the public ____ is called as ‘money supply’
Ans – (c) Explanation:- The money supply refers to the total stock of money held by the public at a particular point of time. It has two components: (i) Current with the public (ii) Demand deposits with the commercial banks
Supply of money refers to quantity of money:
Ans – (c) Explanation:- Money supply is the money held by the public at a point of time. It is a stock concept as it is measured at a point of time. For example: Money supply of India as on…
Money supply includes _____ .
Ans – (b) Explanation:- Money supply refers to the money held by the public at a point of time. It has two components: 1. Currency held by the public 2. Demand deposits of the public with commercial banks
Which of the following is not a problem of barter system of exchange?
Ans – (d) Explanation:- There are four limitations of the barter system: 1. Lack of Double Coincidence of wants 2. Lack of common measure of value (unit of account) 3. lack of standard of Deferred Payment 4. Lack of Store…