Class 12 Macro Economics: Money
Chapter 5: Money — study the evolution of money from barter, its functions and role in the economy, money supply measures M1 through M4, and the Keynesian demand for money motives. CBSE Class 12 Macroeconomics notes covering 3 topics: Barter System, Money, and Money Supply and Demand.
Topics(3)
Barter System
Meaning of barter exchange, the concept of double coincidence of wants, and limitations of the barter system. CBSE Class 12 Macroeconomics notes
Money
Definition, functions (primary, secondary, contingent, dynamic), evolution, classification, and the monetary system in India.
Money Supply and Demand
Meaning, features, components and measures of money supply (M1-M4), high powered money, and the three motives for demand for money. CBSE Class 12 Macroeconomics notes
Questions by Textbook
Study Simplify Special
Frequently Asked Questions
<p>Demand Deposits include ____________. (Choose the correct alternative to fill up the blank)</p>
(D) Current Account Deposits and Fixed Deposits
<p>Demand Deposits include __________. (Choose the correct alternative to fill up the blank)</p>
(D) Current Account Deposits and Fixed Deposits
<p>Read the following statements carefully : Statement 1 : Money supply (M_1) in India does not include 'demand deposits' with commercial banks. Statement 2 : Money supply (M_1) refers to, assets available with the Commercial Banks during a particular period of time. In the light of the given statements, choose the correct alternative.</p>
(D) Both statements 1 and 2 are false.
<p>Identify the incorrect feature(s) of money supply (M_1) from the following : (i) It is measured at a point of time. (ii) It does not include stock of money held by the government. (iii) It is always the currency in the hands of the Central Bank of a nation. Alternatives :</p>
(D) (iii) only
<p>Ms. Iqra Ansari, a teacher, was explaining in her class about various types of deposits with the commercial banks. She quoted that – “These deposits form a part of M1 measure of money supply and are payable on demand by the commercial banks.” Identify the type of deposits she was explaining about and choose the correct alternative : (i) Demand Deposits (ii) Time Deposits (iii) Post Office Deposits Alternatives :</p>
(D) (i), (ii) and (iii)