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.