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.

Option 1: Both are true

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 2 is true and statement 1 is false.

Question

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.

Option 1: Both are true

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 2 is true and statement 1 is false.

Team Careers360 · Accepted Answer

Correct Answer: Statement 2 is true and statement 1 is false.

Solution : Demand deposits are the deposits which can be encased by issuing cheque.
Demand deposit with commercial bank is a part of money supply.
Hence option D is correct .

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Related Questions

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? 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? Demand deposit is a optional money. Demand deposits are treated as equal to currency held as they are readily accepted as a means of payment.

Question : Which of the following statement is correct? There is no common denomination under barter exchange to express the exchange ratios. Money Supply is a flow concept.

Question : Which of the following statement is correct? Borrowings from rest of the world contribute to supply of foreign exchange to India. Grants and donations from rest of the world only result in demand of foreign exchange.

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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?

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?

Demand deposit is a optional money.

Demand deposits are treated as equal to currency held as they are readily accepted as a means of payment.

Question : Which of the following statement is correct?

There is no common denomination under barter exchange to express the exchange ratios.

Money Supply is a flow concept.

Question : Which of the following statement is correct?

Borrowings from rest of the world contribute to supply of foreign exchange to India.

Grants and donations from rest of the world only result in demand of foreign exchange.