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(dBoth
(a)
Legal
a) Limitedand(b) Unlimited
(d) Legal Tender
None of these
Whichofthe
following statementts is correct about Money
19. reserve of banks Supply?
a) lItincludes cash
variable
(b) ltisa flow
J trefers tostock of money held by public at a point of time
(d) Itrefers to stock of money held by public over aperiod of time
money refers to
0. Supplyof (CBSE, Sample Paper 2021}
(a) Currency held by the public
(b) Currency held by Reserve Bank of India (RB)
urency held by the public and demand deposits with commercial banks
16) Currency held in the government account
avchange goods with Bonly when Ahas what Bwants and Bhas what A
as under Barter System. wants/ This is referred to
la) Standard of Deferred Payments (b) Common Measure of Value
Double Coincidence of Wants (d) None of these
22 is also known as transaction money.
(b) M,
() M, (d) M,
23. In India, money creating sector are:
(a) Banking System (b)
Both (a) and (b) Government of the country
(d) None of these
24, Money Supply does not include
(a) Government money held by:
() (b) Commercial Banks
Reserve Bank of India K All of these
. Whichis themost liquid
measure of the money supply?
(b) M,
(d) M,
Assertion Reason Questions (ARQS)
1. Readthe
below: following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given
Assertion (A): Supply is astock concept.
Reason (R): N:Money
Money Supply is measured over a period of time.
Alb)a)terBothnBothatives:Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
5.12
Introductory Macroeconormics
4 Assertion (A) is True but Reason (R) is False.
is True.
(d) Assertion (A) is False but Reason (R)
and Reason(R). Choose one of the
2. Read the following statements: Assertion (A) correct
below:
Assertion(A): Net Demand Deposits (and not Gross
in the money supply.
Demand Deposits) of Commercial alternatives
gven,
Banks are included
Reason(R): Inter-bank deposits are the deposits held by banks on behalfof other banks and
do
to the public.
Alterpatives:
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation
(R) is not tthe nof Assertion
notbelon(A.g
(b) Both Assertion (A) and Reason (R) are True and Reason correct explanation
of (
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A)is False but Reason (R) is True.
Assertion [A
(R). Choose one of the
3. Read the following statements: Assertion (A) and Reason correct
below:
Assertion (A): Currency Money is also termed as Fiat Money.
alternatives given
Reason (R): Under law, currency must be accepted for payment of all debts.
Altegnatives:
a Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
(b) Both Assertion(A) and Reason (R) are True and Reason (R) is nottthe correct explanation of Assertion (A
(c) Assertion (A) is True but Reason (R) is False. Assertion AL
(d) Assertion (A)is False but Reason (R)is True.
4. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives ghven
below:
Assertion (A): Currency held with the government and banks is not included in the Money Supoly
Reason (R): Currency can be legally used to make payment of debts or other obligations.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion AL
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
5. Read the following statements: Assertion (A) and Reason (R).Choose one of the correct alternatives gve
below:
Assertion (A): Demand Deposits with Commercial Banks is not a part of Money Supply.
Reason (R): Demand Deposits are treated asequal to currency held as they are readily accepted as means
of payment.
Alternatives:
Assertion/A
(a) Both Assertion(A) and Reason (R) are True and Reason (R) is the
correcttexplanation ofof Assertion A
(b) Both Assertion (A) and Reason (R) are True and explanation
Reason (R) is not the correcte
(c) Assertion (A) is True but Reason (R) is False.
4d Assertion (A) is False but Reason (R) is True.
alternativesgie
6. Read the following statements: correct a
Assertion (A) and Reason (R). Choose one of the
below:
Assertion (A): In India, no one can refuse to accept pavment made in
currency hotee
Reason (R): Currency notes are unlinmited legal tender in India.
Money
5.13
a6othAssertion(A)and Reason (R) are True and Reason (R)is the correct eplanation of Assertion (A
AMec
8othAssertion(A) and Reason (R) are True and Reason (R)is not the correct explanation of Assertion (A.
but Reason (R) is False.
(A)is True
Assertion
isFalse but Reason
(R) is True.
O Assertion(A)
following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives qlven
theefollowing
statements carefully and choose the correct alternativefromthe following:
LRead tender money.
Statement 1: Bankmoney is a legal
the banks on demand.
Sratement 2:Bank money is repayable by
Alternatives:
true. (b) Both the statements are false.
la) Both the statements are
i Statement 1 is true and Statement 2 is false. d Statement 2 is true
and Statement 1is false.
correct alternative from the following:
2 Read the following statements carefully and choose the
sector, i.e. individuals and business
Statement 1: Money supply includes money held by money-using
firms.
Statement 2:Money supply is concerned with period of time.
Alternatives:
la) Both the statements are true. (b) Both the statements are false.
Statement 1 is false.
Aatement 1is true and Statement 2 is false. (d) Statement 2 is true and
from the following:
3. head the following statements carefully and choose the correct alternative
are ready to exchange each other's
atement 1: Barter systemcan work only when both buyer and seller
goods.
atatement 2: It is very difficult to find double coincidence of wants in real ite.
AlarterngtBothives:the (b) Both the statements are
false.
statements are true. and Statement 1is false.
(0
Statement 1 is ttrue and Statementt2 is false. (d) Statement 2is true
4. Read the following statements carefully and choose the correct alternative fromthe following:
Ala)SttaetrBoth
enment
atives:the?
legal
In India, and currency notes are limited
both coins
b Both the statements are false.
() Statement 1is true and statements
are true.
Statement 2iis false, (d) Statement 2 is true and Statement 1is false.
5.14
introductory Macroeconomics
carefully and choose the correct alternative from the
S. Read the following statements following:to
form part of money supply, as they do not
Statement 1: lnter-bank deposits do not tbelong
Statement 2: Term Deposits are also
included while calculating M, measurement of
money public
supply.
Alternatives (b) Both the statements are false.
(a) B6th the statements are true. Statement 2 IS true and Statement 1 e.
oStatement 1is true andStatement 2 is false. (d)