Money Supply and Demand
Trending Questions
Q. Explain the relationship between money supply and prices.
Q. Why do demand deposits, along with currency, constitute money in the modem economy?
- Demand deposits are lightweight.
- Demand deposits are widely accepted as a means of payment.
- Demand deposits are relatively newer than coins.
Demand deposits are unsafe for use.
Q. Choose the correct statement in relation to money supply.
- The difference between M1 and M2 is post office deposits.
- The difference between M3 and M4 is savings deposits with Post Office Savings Bank.
- The difference between M1 and M2 is time deposits.
- The difference between M1 and M3 is time deposits.
Q. Which of the following allows customers to withdraw money at any time and on an immediate basis?
- M1
- M2
- M3
- M4
Q.
Is the Bill of exchange mandatory?
Q. Which is the most readily available form of money?
- M1
- M2
- M3
- M4
Q. The money in M3 and M4 is termed as ___________ as it can be used only after a particular period of time, and it cannot be withdrawn or used by the people immediately.
- broad money
- narrow money
- thick money
- thin money
Q. As money can be easily withdrawn in M1 and M2, it is known as , whereas the money represented by M3 and M4 is called .
- broad money
- money supply
- money circulation
- narrow money
Q. Which of the following is correct with respect to the fourth stage of money supply?
- M4 = M1 + Time deposits
- M4 = M1 + Total deposits with Post Office Savings Bank
- M4 = M1 + Time deposits + Total deposits with Post Office Savings Bank
- M4 = M3 + Time deposits