Currency with the public plus demand deposits is called: MCQ with Answer and Explanation

Currency with the public plus demand deposits is called:
A. broad money
B. high-powered money
C. narrow money
D. reserve money
Answer: Option C
Solution (By JKSSB Mock Tests)
Currency with the public plus demand deposits is narrow money, M1.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a type of unemployment based on cause?
A. Frictional
B. Voluntary as the only cause-based type
C. Structural
D. Cyclical

Correct Answer: Option B


Explanation:
While unemployment can be voluntary or involuntary, the standard cause-based classification includes frictional, structural, cyclical and seasonal unemployment.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the Indian fiscal federalism?
A. Division of tax powers between Centre and States with Finance Commission recommendations
B. Absence of any sharing of taxes
C. Only states collect all major taxes
D. Complete centralisation of all taxes

Correct Answer: Option A


Explanation:
Indian fiscal federalism involves constitutional division of tax bases between the Centre and States, with the Finance Commission recommending the sharing of divisible taxes and grants.

This question belongs to: Economy GK Economy Set 1
Question #3
In the IS-LM model, the IS curve represents equilibrium in the:
A. Money market
B. Foreign exchange market
C. Goods market
D. Labour market

Correct Answer: Option C


Explanation:
The IS curve shows combinations of interest rate and income at which the goods market is in equilibrium (Investment = Saving).

This question belongs to: Economy GK Economy Set 1