Question
Give meaning of money supply. State its components.

Answer

Meaning: Total stock of money in an economy at a particular point of time.Components:
  1. Currency held by public.
  2. Demand deposits with banks.
  3. Other deposits with central bank.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

From the following data, calculate 'gross value added at factor cost':
S. No.
 
$(₹$ in lakhs$)$
$(i)$
Sales.
$180$
$(ii)$
Rent.
$5$
$(iii)$
Subsidy.
$10$
$(iv)$
Change in stock.
$15$
$(v)$
Purchase of raw materials.
$100$
$(vi)$
Profits.
$25$
A consumer consumes only two goods $A$ and $B$ and is in equilibrium. Show that when price of good $B$ falls, demand for $B$ rises. Answer this question with the help of utility analysis.
Explain the credit creation role of commercial banks with the help of a numerical example. Explain the credit creation role of commercial banks with the help of a numerical example.
Calculate (a) private income, (b) personal disposable income from the following data:
    (Rs. in crores)
1 Income from property and entrepreneurship was accruing to government administrative deparments. 500
2 Saving of non-departmental public enterprises. 100
3 Corporation tax. 80
4 Income from domestic product accruing to private sector. 4,500
5 Current transfers from government administrative deparments. 200
6 Net factor income from abroad. (-)50
7 Direct personal taxes. 150
8 Indirect tax. 220
9 Current transfers from rest of the world. 80
10 Saving of private corporate sector. 500
An economy is in equilibrium. From the following data calculate autonomous consumption.
  1. Income = 10000
  2. Marginal propensity to save = 0.2
  3. Investment = 1500
If the Real GDP is ₹ 300 and Nominal GDP is 330, calculate Price Index (base = 100).
Are the following a part of country's Net Domestic Product at Market Price? Explain.
  1. Net Indirect Taxes.
  2. Net exports.
  3. Net Factor Income from Abroad.
  4. Consumption of fixed capital.
Differentiate between Operating Surplus and Compensation of Employees.
Explain the 'Unit of account' function of money. How has it solved the related problem created by barter?
If the Nominal GDP is ₹ 1200 and Price Index (with base = 100) is 120, calculate Real GDP.