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Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Ans – (c) Explanation:- Money as a measure of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to a…
Ans – (c) Explanation:- Money as a measure of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to a…
Ans – (b) Explanation:- Price stability is not the function of money. It is the study of macro economics.
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 – (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…