Match List-I with List-II List-

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match List-I with List-II

List-I	List-II
(A) Secondary Deposits	(I) Initial deposits with commercial banks
(B) Primary Deposits	(II) The ratio of money held by the public in currency to that held at deposits in commercial banks.
(C) Currency Deposit ratio	(III) No intrinsic value
(D) Fiat money	(IV) Demand deposits which come back to Commercial bank through lending process.

Choose the correct answer from the options given below:

Options:

(A)-(I), (B)-(IV), (C)-(II), (D)-(III)

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

Explanation:

The correct answer is Option (2) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)

(A) Secondary Deposits are the demand deposits that are created when a commercial bank lends money, and the borrowed funds are subsequently deposited back into the banking system. This matches (IV).
(B) Primary Deposits are the initial deposits made by the public in commercial banks. This matches (I).
(C) Currency Deposit ratio is the ratio that measures the proportion of money held by the public as currency relative to the money held as deposits in commercial banks. This matches (II).
(D) Fiat money is currency that is declared legal tender by a government but has no intrinsic value (e.g., paper money). This matches (III).