Practicing Success
Fill in the blanks : In a modern economy, money comprises of _ _ _ _ _ _ _ _ and _ _ _ _ _ _ _ _. |
Cash and Cash equivalent Notes and Coins Currency and foreign exchange reserves Cash and Bank deposits |
Cash and Bank deposits |
The correct answer is option (4) : Cash and Bank deposits "In a modern economy, money comprises cash and bank deposits. Depending on what types of bank deposits are being included, there are many measures of money. These are created by a system comprising two types of institutions: central bank of the economy and the commercial banking system." |