Understanding Money Supply and Value

Front

The entire stock of money in an economy primarily consists of:

Back

Bank notes, coins, and bank deposits

Front

Assets that can be converted to cash, even though at a cost, are called:

Back

Near monies

Front

Why does the definition of money supply include bank deposits?

Back

They can be readily converted to cash for transactions.

Front

Which of the following is NOT part of the primary definition of money supply given in the note? Options: Bank notes, Coins, Bank deposits, Treasury bills

Back

Treasury bills

Front

The term "entire stock of money" refers to:

Back

The total money available in an economy at a point in time

Front

The demand for money means the desire to:

Back

Hold money in liquid or cash form

Front

Demand for money serves simultaneously as a medium of exchange and:

Back

A store of value

Front

Holding money for everyday transactions like buying food is known as the:

Back

Transaction motive

Front

The desire to hold money to meet needs arising from unplanned circumstances like sickness is the:

Back

Precautionary motive

Front

Holding money for "the rainy day" refers to which motive?

Back

Precautionary motive