Archives Answers

Double coincidence of wants refers to the simultaneous fulfillment of mutual wants of buyers and sellers. Explanation:- Double coincidence of wants refers to the mutual wants of buyers and sellers at the same time. For example:- A wants to sell…

Money Supply refers to total volume of money held by public at a particular point of time in an economy. Explanation:- Money supply refers to money held by public at a particular point of time It has two components: 1.…

Barter Exchange refers to exchange of goods for goods. Explanation:- In the beginning of civilization, human needs were simple and limited. People used to exchange goods with each other to satisfy their wants. Barter Exchange refers to the exchange of…

Two components of money supply are Currency with public and Demand deposits held by commercial banks. Explanation:- Money Supply has two components: Current with public Demand deposits of public with commercial banks

Money supply is a stock concept as it is concerned with a particular point of time. Explanation:- The economic variables that are measured at a point of time are called stock variables. Money supply is measured at a particular point…

Ans: (i) – e Barter Exchange is the exchange of goods for goods (ii) – d M1 = Currency and coins with Public + Demand Deposits of Commercial Banks + Other Deposits with RBI (iii) – b The currency and…

Ans: (i) – (b) (ii) – (c) Explanation:- M2 = M1 + Savings deposits with post office saving bank M3 = M1 + Net Time Deposits with Banks

Ans – (i) – (a) (ii) – (b) Explanation:- Measure of value:- Under the Barter system, different goods were at different values and there was no common denomination to express their exchange ratios. But, money is the measuring rod that…

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…

Ans – (a) Statement 1 is true M1 only includes most liquid assets that are readily available for payment against any debt and obligation. Thus only demand deposits are included as they are readily available for payment through cheque, demand…