Match List-I with List-II
| List-I | List-II | ||
| (A) | Fixed period to maturity. | (I) | Intrinsic Value |
| (B) | Currency notes and coins. | (II) | \( M_3 \) |
| (C) | Gold or silver coin. | (III) | Time Deposits |
| (D) | Aggregate monetary resources. | (IV) | Fiat Money |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Money takes several forms, such as coins, notes and bank deposits. Its total supply is also measured in several ways.
| List-I | List-II | Reason |
|---|---|---|
| (A) Fixed period to maturity. | (III) Time Deposits | Deposits such as fixed deposits have a fixed period to maturity, and are called time deposits. |
| (B) Currency notes and coins. | (IV) Fiat Money | Their value comes from the guarantee of the issuing authority, not from the paper or metal in them. |
| (C) Gold or silver coin. | (I) Intrinsic Value | The metal in such a coin is itself valuable. |
| (D) Aggregate monetary resources. | (II) \( M_3 \) | M3, the most commonly used measure of money supply, is also known by this name. |
NCERT (2026-27): “The Supply of Money: Various Measures … Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions. Such deposits are called demand deposits as they are payable by the bank on demand from the account-holder. Other deposits, e.g. fixed deposits, have a fixed period to maturity and are referred to as time deposits.… …The value of the currency notes and coins is derived from the guarantee provided by the issuing authority of these items. Every currency note bears on its face a promise from the Governor of RBI that if someone produces the note to RBI, or any other commercial bank, RBI will be responsible for giving the person purchasing power equal to the value printed on the note. The same is also true of coins. Currency notes and coins are therefore called fiat money. They do not have intrinsic value like a gold or silver coin.… Legal Definitions: Narrow and Broad Money … M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources…” |