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प्रश्न
Explain money supply components.
उत्तर
Money supply consists of various components as follows:
Currency, demand and time deposits in commercial banks and other types of deposits are the total amount of money in an economy. Definition of supply of money varies depending on the components which are included and excluded.
Money supply = Currency with the public + Demand deposits with commercial banks +Deposits kept by commercial banks with the Reserve Bank
Or
M1 = C + DD + OD
Currency with the public includes notes and coins issued by the government authority of India on the basis of the minimum reserve system.
Demand deposits with commercial banks are current account deposits with banks or other financial institutions which are payable on the demand by cheques. Banks do not provide interest payments on deposits.
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संबंधित प्रश्न
Define money supply
Explain the following objective of government budget:
Reducing income inequalities
State the two components of M1 measure of Money Supply.
On the basis of government law, the compulsory payment made by the public is known as ______
Which among is the direct tax?
Study the given picture carefully:
| Sources of State and Local Government tax revenues for a financial year |
 |
Answer the following questions based on common knowledge and picture:
- Categorise the given items in the picture into tax/non-tax receipts.
- “Government has started spending more on providing free services like education and health to the poor.”
In the light of above statement, explain how the government can use the budgetary policy in reducing ‘inequalities of income’.
