Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match the statements in column I with correct statements in column II.

 

Options:

i-a, ii-b, iii-c, iv-d

i-b, ii-a, iii-d, iv-c

i-b, ii-d, iii-c, iv- a

i-b, ii-d, iii-a, iv-c

Correct Answer:

i-b, ii-d, iii-c, iv- a

Explanation:

(i-b) High interest rates means people prefer keeping money in banks rather than keeping with themselves and spend it. Hence high interest rates means low demand for money. 
(ii-d) Reserve Bank of India is the central bank of India. 
(iii-c) Barter exchange involves double co-incidence of wants i.e. simultaneous satisfaction of wants of the transacting parties. 
(iv-a) Store of value is one of the functions of money.