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Ans – (a) Explanation:- M1 is also known as Transaction Money as it can be directly used for carrying out transactions at will. M1 is the first and basic measure of money supply. M1 is the most liquid measure of…
Ans – (c) Explanation:- Double coincidence of wants refers to a situation where both buyers and seller are ready to exchange each other’s goods. For example, A can exchange goods with B only when A has what B wants and…
Ans – (c) Explanation: Money supply refers to the stock of money held by the public at a point of time. It has two components: 1. Current held by public 2. demand deposits of public with the commercial banks
Ans – (c) Explanation:- Money supply refers to the stock of money held by the public at a point of time. It has two components: 1. Current held by public 2. demand deposits of public with the commercial banks
Ans – (b) Explanation:- In India, paper notes are unlimited Legal Tender Unlimited Legal Tender: It refers to that form of legal tender money, which can be paid in the discharge of a debt of any amount. Legal action can…
Ans – (b) Explanation:- High-powered money consists of two components: 1. Currency with the public 2. Cash reserves with the banks It does not includes demand deposits of commercial banks.
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…
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
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…
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…