McqMate
| Q. |
Regarding money supply situation in India it can be said that the : |
| A. | Currency with the public is inconvertible only. |
| B. | Currency with the public is less than the deposits with the banks. |
| C. | Currency with the public is more than the deposits with the banks. |
| D. | Currency with the public is almost equal to the deposits with banks. |
| Answer» B. Currency with the public is less than the deposits with the banks. | |
|
Explanation: Money supply in India includes the following: (i) Currency with the public: (ii) Demand deposits and time deposits with banks: (iii) Deposits with reserve Bank of India: and (iv) Deposits in Post Office. The currency with public is less than the total currency issued by RBI. This is because of cash reserves with banks, i.e., a part of currency issued remains with banks. As far as deposits are concerned, during the last four decades, the proportion of demand deposits, time deposits and other with banks in relation to total supply of money has been increasing with reciprocal diminution in currency held by the public. |
|
View all MCQs in
Economics (GK)No comments yet