Which of the following is not a function of money?
Ans – (b) Explanation:- Price stability is not the function of money. It is the study of macro economics.
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With the help of this function of money, a person can buy/sell anything through money (without selling/buying in return)
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…
Which function of money is highlighted in the given statement: ‘It has separated the acts of sale and purchase’?
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…
Which is the most liquid measure of the money supply?
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.
Money Supply does not include money held by:
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…
In India, money creating sector are:
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…
____ is also known as transaction money
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…
A can exchange goods with B only when A has what B wants and B has what A wants. This is referred to as ____ under Barter System
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…
Supply of money refers to ____.
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
Which of the following statements is correct about Money Supply?
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