Money Class 12

Measuring the value of goods and services refers to which of the following functions of money?

• Store of value

• Unit of value

• Standard of deferred payments

• Medium of exchange

Which of the following functions of money simplifies the process of borrowing and lending?

• Store of value

• Medium of exchange

• Standard of deferred payments

• Unit of Value

Which of the following is not included in money supply?

• Currency held by public

• Inter-bank-deposits

• Demand deposits in Banks

• Saving deposits

Read the following dialogue between two people.

Ramesh: I want 1 kg of potatoes.

Suresh: What will you give in exchange?

Ramesh: I can give you two litres of milk in return for the potatoes.

Suresh: I don’t need milk. I want a pair of shoes.

WhichofthefollowingproblemisbeingfacedbyRameshandSureshintheirexchangeprocess?

• Lack of double coincidence of wants

• Absence of common unit of value

• Lack of store of value

• Lack of standard of deferred payment

M1 of money supply does not include________.

• Currency held by public

• Other deposits in RBI

• Demand deposits with the Commercial Banks

• Net time deposits with banks

Assertion: Supply of money is a flow variable.

Reason: It is measured at a point of time.

• Assertion and Reason both are correct statements and Reason is correct explanation for Assertion.

• Assertion and Reason both are correct statements but Reason is not correct explanation for Assertion.

• Assertion is true but Reason is false.

• Assertion is false but Reason is true

Who regulates money supply in India?

• Government of India

• Reserve Bank of India

• Commercial banks

• Planning Commission

Demand deposit are __________.                                                                                                 

• (i) Chequeable deposits  

• Non-Chequeable deposits (ii)

• Deposits which can be withdraw on demand (iii)

• Both (i) and (iii)