27 Views

Question : Regarding the money supply situation in India in 2014-15, it can be said that the:

Option 1: Currency with the public is inconvertible only

Option 2: Currency with the public is less than the deposits with the banks

Option 3: Currency with the public is more than the deposits with the banks

Option 4: Currency with the public is almost equal to the deposits with the banks


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Currency with the public is less than the deposits with the banks


Solution : The correct answer is the currency with the public is less than the deposits with the banks.

The cash in circulation is indeed smaller than the deposits in Indian banks. People are increasingly adopting electronic payments, such as debit cards, credit cards and mobile wallets, to make purchases. As a result, they have less cash in hand.

The supply of money is a dynamic and influential factor in the economic landscape. Its management is a key responsibility of central banks and policymakers, impacting interest rates, inflation levels, and overall economic stability. As economies evolve, so does the nature of the money supply, making it imperative for a nuanced understanding of its components and their interplay. A well-regulated and stable money supply is essential for fostering sustainable economic growth and maintaining financial equilibrium.

Know More About

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
VIT Bhopal University | M.Tec...
Apply
M.Tech admissions open @ VIT Bhopal University | Highest CTC 52 LPA | Apply now
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
IBSAT 2025-ICFAI Business Sch...
Apply
IBSAT 2025-Your gateway to MBA/PGPM @ IBS Hyderabad and 8 other IBS campuses | Scholarships worth 10 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books