Question : Which of the following statement is correct?

Only gross demand deposits are part of money supply.

Bank money is non-legal tender money.

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?

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

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 : Only net demand deposits are part of money supply.
Bank money is non-legal tender money.
Hence option D is correct .

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Related Questions

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? 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 are true? During excess demand, aggregate demand is insufficient to eliminate in voluntary unemployment. To correct the inflationary gap money supply should be increased.

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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?

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 are true?

During excess demand, aggregate demand is insufficient to eliminate in voluntary unemployment.

To correct the inflationary gap money supply should be increased.