Advertisements
Advertisements
Question
State the two components of M1 measure of Money Supply.
Solution
The M1 measure of money supply includes the following components:
1. Currency held by the public in the form of notes and coins
2. Net Demand Deposits held by the commercial banks
3. Other deposits held by the RBI
shaalaa.com
Changes in Government Spending Taxes and Money Supply
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Define money supply
Explain money supply components.
Explain the following objective of government budget:
Reducing income inequalities
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’.
