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.

 

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 : 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 : 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.
   

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 : Which of the following statement is correct?

• Depreciation of currency has same effect on exports as devaluation of currency.
• Increase in investment by MNCs in India leads to depreciation of domestic currency.

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 : Which of the following statement is correct?

• Supply for foreign exchange arise when people wants to make gains from appreciation of currency.
• Loans from foreign country are raised in foreign currency. So foreign currency is needed to repay such loans.

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 : 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.

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.