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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 :
Demand Deposits include ____________. (Choose the correct alternative to fill up the blank)
Demand Deposits include __________. (Choose the correct alternative to fill up the blank)
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.
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 :
Justify the following statements with valid arguments : (a) Money serves as the 'medium of exchange' for transactional purposes in an economy. (b) The Central Bank acts as Banker's Bank in an economy.
Justify the following statements with valid arguments : (a) Money serves as a 'store of value' in an economy. (b) The Central Bank acts as 'Government's Bank' in an economy.
Identify the incorrect feature(s) of the Money Supply in an economy, from the following : (i) It is measured during a period of time. (ii) It includes stock of money held by the government of a nation. (iii) It always represents the currency held with Central Bank of the Nation. Alternatives :
Identify the incorrect feature(s) of the Money Supply in an economy, from the following : (i) It is measured during a period of time. (ii) It includes stock of money held by the government of a nation. (iii) It always represents the currency held with Central Bank of the Nation.
Justify the following statements with valid arguments : (i) Money supply in an economy is an example of a stock variable. (ii) The Central Bank provides several Banking services to the government. Assuming for a hypothetical economy, Central Bank increases the Reserve Ratio from 20% to 25% and the total primary deposits stand at Rs. 1,000. Explain the effect of rise in Reserve Ratio on credit creation by commercial banks.
(a) "In a country, routine economic operations rely on a stable medium, to facilitate transactions for maintaining smooth economic activities." Discuss briefly the indicated function of money. (b) State the meaning and components of M_1 measure of money supply. (c) State the formula to compute Credit Multiplier.
(a) "In a country, routine economic operations rely on a stable medium, to facilitate transactions for maintaining smooth economic activities." Discuss briefly the indicated function of money. (b) State the meaning and components of M1 measure of money supply. (c) State the formula to compute Credit Multiplier.
____________ releases data of money supply in India. (Choose the correct option to fill in the blank)
___________ releases data of money supply in India. (Choose the correct option to fill in the blank)
Identify, which of the following are the correct features of money supply in an economy. (Choose the correct alternative) (i) It is a stock concept. (ii) It includes money held by banks and government. (iii) It is a flow concept. (iv) It includes money held by households and firms. Alternatives :
In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at Rs. 1,42,000 crore, Rs. 22,000 crore and Rs. 86,000 crore respectively. The value of Money Supply (M1) would be Rs. __________ crore. (Choose the correct option to fill in the blank)
Identify, that function of money, which has effectively solved the problem of `double coincidence of wants' in a transaction.
Sumit deposited Rs. 10 lakh in his savings account. The deposits made by him is a part of ________ in the M1 measure of money supply. (Choose the correct option to fill in the blank)
Read the following statements carefully : Statement I : The measurement of value makes it easier to compare the relative worth of two commodities. Statement II : Money facilitates the act of sale and purchase of goods and services. In the light of the given statements, choose the correct option from the following :
(a) Define Money Supply. (b) Explain any one component of money supply.
Money supply is a ___________ variable, as it refers to the total volume of money held by the ___________ at a particular point of time. (Choose the correct option to fill in the blanks)