Question

60. Which of the given below statements are correct?

i) India’s currency to GDP ratio declined fairly steadily for the first decade and half after independence

ii) The currency to GDP ratio showed an upward trend in 1970’s when growth increased and then accelerated further during the growth boom of 2000’s

• A. a) Only i
• B. b) Only ii
• C. c) Both I and ii
• D. d) None of the above

Answer 1

The correct option is C

c) Both I and ii

60 Ans C

Explanation: India's cash to GDP ratio -- an indicator of the amount of cash used in the economy -- is around 12 to 13 per cent, much higher than major economies including the US, the UK and Euro area but below that of Japan (about 18 per cent).