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प्रश्न
Read the following statements carefully:
Statement 1: Money supply (M1) in India does not include ‘demand deposits’ with commercial banks.
Statement 2: Money supply (M1) 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.
पर्याय
Statement 1 is true and Statement 2 is false.
Statement 1 is false and Statement 2 is true.
Both statements 1 and 2 are true.
Both statements 1 and 2 are false.
उत्तर
Both statements 1 and 2 are false.
Explanation:
Demand deposits or chequable deposits with commercial banks are included in M1. M1 does not include assets held by commercial banks within a specific time period. M1 money supply contains an economy's most liquid type of money. It includes both the total quantity of primary currency in circulation and monies held in demand deposits at commercial banks and other financial institutions.
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संबंधित प्रश्न
State the meaning and components of the money supply.
What are the alternative definitions of money supply in India?
Answer the following question.
State any two components of the M1 measure of the money supply.
The RBI Headquarters is located in ______.
The basic distinction between M1 and M2 is with regard to.
MV stands for the ______.
What is money supply?
What are the determinants of money supply?
One of the measures of the money supply is ______.
Cash balance approach in Quantity theory emphasis on ______.
Money supply in India may increase if, ______
- Reserve Bank of India (RBI) injects more money in circulation.
- The commercial banks expand their credit operation.
- Tax rates are reduced by the Central Government.
- Reserve Bank of India increases the Bank Rate.
