Question : Which of the following statement is correct?

• Demand deposits are the deposits which can be encased by issuing cheque.
• Demand deposit with commercial bank is not a part of money supply.

Question : Which of the following statement is correct?

• M1 includes net demand deposits and not gross demand deposits.
• Money Supply doesnot includes money held by government and banking system.

Question : Which of the following statement is correct?

• Only gross demand deposits are part of money supply.
• Bank money is non-legal tender money.

Question : Which of the following statement is correct?

• Currency money is also termed as fiat money.
• Currency can be legally used to make payments of debts or other obligations.

Question : Which of the following statement is correct?

• Devaluation and depreciation of currency are one and the same thing
• Demand for American goods will rise in India due to every session of Indian currency.