Statement 1: Money supply includes money held by money-useing sector, i.e., individuals and business firms
Statement 1: Money supply includes money held by money-using sector, i.e., individuals and business firms.
Statement 2: Money supply is concerned with period of time.
Alternatives:
(a) Both the statements are true
(b) Both the Statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Anurag Pathak Changed status to publish December 15, 2023
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.
Statement 2 is false
Money supply is concerned with the point of time. It is a stock concept and is measured at a point in time.
For example,
Money supply on 31st March 2024,
Anurag Pathak Changed status to publish December 15, 2023
