Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Question:

Identify the FALSE statement in the context of money supply.

Options:

Total stock of money alone in an economy determines the overall liquidity in the economy.

Commercial banks use primary deposits to create credit.

The money held by the government is not included in the measure of money supply.

Credit money refers to money whose money value is more than commodity value.

Correct Answer:

Total stock of money alone in an economy determines the overall liquidity in the economy.