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______ is the main source of money supply in an economy. - Economics

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Question

______ is the main source of money supply in an economy.

Options

  • Central Bank

  • Commercial Banks

  • Both Central Bank and Commercial Banks

  • Government

MCQ
Fill in the Blanks

Solution

Both Central Bank and Commercial Banks

Explanation:

In India, bank deposits and cash are the primary sources of money supply. The RBI is in charge of overseeing the economy's money supply and has the authority to print and issue currency.

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Central Bank: Functions
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Chapter 6: Meaning and Functions of Money - Exercise [Page 131]

APPEARS IN

Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 6 Meaning and Functions of Money
Exercise | Q 12. | Page 131
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