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Ans – (b) Explanation:- Reserve bank of India has the authority to issue and regulate the currency in India.

Ans – (a) Explanation:- Sita wants potatoes but wants to give 2 liters of milk to Rani. But Rani does not want 2 liters of milk but wants a pair of shoes. It means Sita and Rani have different wants…

Ans – (d) Explanation:- Following are the limitations of the barter exchange. 1. Medium of exchange 2. Measure of value 3. Store of value 4. Standard of deferred payments

Ans – (a) Explanation:- Money supply is a stock concept as it is measured at a point of time. For example:- The money supply in India at 31st march 2024 at 12 P.M is 2,000 crore.

Ans – (a) Explanation:- Money supply refers to the total volume of money held by the public at a particular point of time. It consists of two components: 1. Current held by the public 2. demand deposits held by the…

Ans – (c) Explanation: What is high-powered money? High Powered Money is money produced by the RBI and the government. It consists of two components: 1. Currency held by the public 2. Cash reserves with the banks

Ans – (b) Explanation:- M1 is the most liquid form of money supply. It consists of three components. M1 = Currency and coins with public + Net demand deposits with banks + Other deposits with RBI.

True, Money has general acceptability and its value remains stable. So, it can be stored to transact with, in future.

True, Money as a ‘Medium of Exchange’ enables a person to buy or sell at different points of time. Money works as a medium of exchange: As a medium of exchange, money has removed the major difficulty of lack of…

True, Money as a ‘standard of deferred payments’ simplifies the borrowing and lending operations, which help in capital formation and economic development.