Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match List I with List II

List I List II
A. Barter Exchange I. Medium of Exchange
B. Money Supply II. M1
C. Function of Money III. Goods for Goods
D. Measure of Money Supply IV. Stock Concept

Choose the correct answer from the options given below :

Options:

A-IV, B-III, C-II, D-I

A-III, B-IV, C-I, D-II

A-I, B-III, C-IV, D-II

A-II, B-IV, C-I, D-III

Correct Answer:

A-III, B-IV, C-I, D-II

Explanation:

The correct answer is option (2) : A-III, B-IV, C-I, D-II

List I List II
A. Barter Exchange III. Goods for Goods
B. Money Supply IV. Stock Concept
C. Function of Money I. Medium of Exchange
D. Measure of Money Supply II. M1

- A- III : Barter Exchange is the exchange of goods for goods, which is a function of money.

- B-IV : Money Supply is a stock concept.

- C-I : Function of Money includes serving as a medium of exchange.

- D-II : M1 is a measure of money supply.  M1 = Currency + Deposits