Bissoy.com
Doctors Medicines MCQs Q&A

Which of the following are a part of the aggregate monetary resources in an economy? 1. Currency held by the public 2. Net time deposits of commercial banks 3. Net demand deposits held by commercial banks Select the correct answer using the code given below.

Which of the following are a part of the aggregate monetary resources in an economy? 1. Currency held by the public 2. Net time deposits of commercial banks 3. Net demand deposits held by commercial banks Select the correct answer using the code given below. Correct Answer 1, 2 and 3 only

The correct answer is 1, 2 and 3 only.

Key Points

  • RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4. Here, M3 is defined as aggregate money supply.
  • M1 = CU + DD
  • M3 = M1 + Net time deposits of commercial banks where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks.
  • The word 'net' implies that only deposits of the public held by the banks are to be included in money supply.
  • The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply.
  • M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.

Related Questions

Which of the following statements are true in context of scheduled banks?
1. All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks.
2. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks.
3. Scheduled Commercial Banks in India are categorized into five different groups - SBI, Nationalised Banks, Regional Rural Banks, Foreign Banks and Other Indian Scheduled Commercial Banks in the private sector.
4. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.
Consider the following policies for preventing deadlock in a system with mutually exclusive resources. I. Processes should acquire all their resources at the beginning of execution. If any resource is not available, all resources acquired so far are released II. The resources are numbered uniquely, and processes are allowed to request for resources only in increasing resource numbers III. The resources are numbered uniquely, and processes are allowed to request for resources only in decreasing resource numbers IV. The resources are numbered uniquely. A process is allowed to request only for a resource with resource number larger than its currently held resources Which of the above policies can be used for preventing deadlock?
Which of the following statements are true/ false?
1. In the market economy, the prices are determined by the level of demand and supply in the market.
2. Mixed economy is an economic system in which both the private and public sector have equal roles to play.
3. Planned economy is also known as a centralised economy, controlled economy or command economy.
4. In the market economy, governments do not have much role to play.
Which two classes use the Shape class correctly?
A. public class Circle implements Shape { private int radius; }B. public abstract class Circle extends Shape { private int radius; }C. public class Circle extends Shape { private int radius; public void draw(); }D. public abstract class Circle implements Shape { private int radius; public void draw(); }E. public class Circle extends Shape { private int radius; public void draw() { /* code here */ } }F. public abstract class Circle implements Shape { private int radius; public void draw() { /* code here */ } }
The Reserve Bank of India (RBI) acts as a banker’s bank. This would imply which of the following ? 1. Other banks retain their deposits with RBI 2. The RBI lends funds to the commercial banks in times of need 3. The RBI advises commercial banks on monetary matters Select the correct answer using the code given below : 
The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to commercial banks in times of need. 3. The RBI advises commercial banks on monetary matters. Select the correct answer using the codes given below:
In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'? 1. To enable the Central Bank to control the amount of advances the banks can create 2. To make the people's deposits with banks safe and liquid 3. To prevent the commercial banks from making excessive profits 4. To force the banks to have sufficient vault cash to meet their day-to-day requirements Select the correct answer using the code given below.
Which of the following are the limitations in the creation of credit of commercial banks? A. The amount of cash that commercial banks possess B. Supply of collateral security C. Monetary policy of the central bank D. Allied deposits scheme E. Deposits linked with special benefits Choose the correct answer from the options given below:
Which of the following statement is correct?
Statement I In currency quotation, the first currency is the base Currency and the second currency is known as the quoted currency.
Statement II A currency pair is generally represented by using a hyphen or an oblique.
The influence of shape of aggregate in strength and workability of concrete are given below in statements S1, S2, S3 and S4. Which of the statements are correct? S1: Rounded aggregate produces concrete with high workability and low strength. S2: Angular aggregate produces concrete with high workability and low strength. S3: Rounded aggregate produces concrete with low workability and high strength. S4: Angular aggregate produces concrete with low workability and high strength.