MONEY AND BANKING

1. Money supply refers to:

• Total volume of money held by the public at a particular point of time

• Total volume of money held by the public over a period of time

• Total volume of money held by the government

• Both (a) and (b)

The following dialogue between two people:

Sita: I want 1 kg of potatoes
Rani: What will you give in exchange?
Sita: I can give you 2 liters of milk in return for the potatoes.
Rani: I don’t need milk. I want a pair of shoes.

The following problem is being faced by Sita and Rani in their exchange process?

• Absence of common units of value

• Lack of double coincidence of wants

• Lack of store of value

• Lack of standard of deferred payment

Who regulates money supply?

• Government of India

• Reserve Bank of India

• Commercial Banks

• Planning Commission

Supply of money refers to quantity of money:

• As on 31st March

• During any specified period of time

• As on any point of time

• During a fiscal year

______ are termed as Legal Tender Money.

• Demand deposits

• Time Deposits

• Inter-bank deposits

• Currency Notes

______ is also known as transaction money.

• M1

• M2

• M3

• M4

If you have 2 meters cloth and you want wheat against it, then how much wheat you should get?
Drawback of Barter Exchange is highlighted?
L

• Lack of Medium of Exchange

• Lack of Store of Value

• Lack of Measure of Value

• None of these

Demand deposits with Commercial Banks are a part of:

High Powered Money

• Money Supply

• High Powered Money

• Both (a) and (b)

• Neither (a) nor (b)

In India, money creating sector are:

• Banking System

• Govt. of the country

• Both (a) and (b)

• None of these

Tim went to the supermarket with ₹5,000 in his wallet to buy groceries for his family. He purchased vegetables, fruits, and other household items, paying the respective prices at the counter. Which functions of money were being demonstrated in this real-life scenario?
(CBSE, Practice Paper 2023-24)
(a) Unit of Labor
(b) Store of Value
(c) Medium of Exchange
(d) Measure of Creditworthiness

• Option A and B

• Option B and C

• Option A, B and D

• Option A, C and D