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?

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