Money Supply

Q.

What are the components of the money supply?

Q.

Why are demand deposits considered as money?

Q.

Find the Incorrect option A. Demand deposit share the essential features of money B. With demand deposit payments can be made without cash C. Demand deposits are safe way of money transformation D. Demand deposit facility is like cheque

Q.

Supply of Money Refers to Quantity of Money

Q. In terms of money supply,

Currency note and coins in circulation + Net demand deposits held in commercial banks = _____

1. M1
2. M2
3. M3
4. M4

Q.

The factor which does not influence the process of capital formation in an economy is

1. Capital of savings

2. Creation of savings

3. Mobilisation of savings

4. Investment of savings

Q. In money supply, M2 includes both M1 and savings deposits with ________.

1. commercial banks
2. savings banks
3. rural banks
4. term deposits

Q. Money in circulation in an economy is called _________.

1. money flow
2. money supply
3. money demand
4. money circulation

Q. Every bank is obliged to follow each and every regulation of the RBI to curb the money supply in the economy.

1. False
2. True

Q. Select the most common forms of money in circulation.

1. Coins
2. Promissory notes
3. Currency notes
4. Credit cards

Q. and (in the order of appearance) are called narrow money.

1. M1
2. M2
3. M3
4. M4