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Ans – (d) Explanation:- Statement 1 is false Cryptocurrency is not a legal tender money. It is not approved by the Indian government yet as a legal tender. Statement 2 is true. Cryptocurrency is a type of digital currency. It…
Ans – (c) Explanation:- Statement 1 is true Only demand deposits by the public are included in the money supply. Statement 2 is false Only demand deposits by the public are included in the money supply as these are readily…
Ans – (b) Explanation:- Statement 1 is false The term money includes two terms Money = Currency with public + Demand Deposits with Banks Statement 2 is also false In India, both coins and currency notes are unlimited legal tender…
Ans – (a) Explanation:- Statement 1 is true In a Barter system, transactions occur with the exchange of goods. It works when both the buyer and seller are ready to exchange the goods of each other. for example, A wants…
Ans – (c) Explanation:- Statement 1 is true Money supply includes money held by the public that can easily be disposed of in the settlement of liabilities and obligations. The public includes individuals and business firms that are money-using sector.…
Ans – (d) Explanation:- Assertion (A) is false Bank money is not a legal tender money. It is an optional money as it can be refused in settlement of any financial obligation and liabilities. It depends on the acceptor whether…
Ans – (d) Explanation:- Assertion (A) is false Notes and Coins are not the only sources of money supply in the economy. Demand deposits of the public with the commercial bank is also part of the money supply. Money Supply…
Ans – (a) Explanation:- Bank money is a non-legal tender money. As bank money such as cheques, demand drafts can be refused by any citizen of the country for settlement of a financial transaction. Any citizen is not obliged to…
Ans – (b) Explanation:- Assertion (A) is true Demand deposits are non-legal tender money or optional money as the acceptor can refuse to accept the payment in the form of cheque and demand draft. Reason (R) is also true The…
Ans – (a) Explanation:- No one can refuse to accept payment made in currency notes as these are the unlimited legal tender in India. the currency can be used to meet any liabilities and obligations.