Question 1

Demand Deposits include ____________. (Choose the correct alternative to fill up the blank)

Accepted Answer

(D) Current Account Deposits and Fixed Deposits

Question 2

Demand Deposits include __________. (Choose the correct alternative to fill up the blank)

Accepted Answer

(D) Current Account Deposits and Fixed Deposits

Question 3

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.

Accepted Answer

(D) Both statements 1 and 2 are false.

Question 4

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 :

Accepted Answer

(D) (iii) only

Question 5

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 :

Accepted Answer

(D) (i), (ii) and (iii)

Money

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