Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Fill in the blanks : In a modern economy, money comprises of _ _ _ _ _ _ _ _ and _ _ _ _ _ _ _  _.

Options:

Cash and Cash equivalent

Notes and Coins

Currency and foreign exchange reserves

Cash and Bank deposits

Correct Answer:

Cash and Bank deposits

Explanation:

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."