Question

Match the correct pairs of items in Column 1 and Column 2.

Column 1	Column 2
(1) Money supply	(a) Currency held by public, currency in the vaults of the banks and reserves with the central bank.
(2) High-powered money	(b) Stock of money at a point of time
(3) Standard of deferred payment	(c) Inflation arising from sharp rise in oil prices
(4) Supply shock	(d) Function of money

Answer 1

Column 1	Column 2
(1) Money supply	(b) Stock of money at a point of time
(2) High-powered money	(a) Currency held by public, currency in the vaults of the banks and reserves with the central bank.
(3) Standard of deferred payment	(d) Function of money
(4) Supply shock	(d) Function of money