English

Which of the following is the main source of money supply in an economy?

Advertisements
Advertisements

Question

Which of the following is the main source of money supply in an economy?

Options

  • Central bank

  • Commercial banks

  • Government

  • Both central bank and commercial banks

MCQ
Advertisements

Solution

Both central bank and commercial banks

Explanation:

The central bank issues currency, while commercial banks create deposit money through their banking activities. The government is not identified here as a main source of money supply.

shaalaa.com
  Is there an error in this question or solution?
Chapter 13: Money: Meaning and Functions - TEST YOURSELF QUESTIONS [Page 264]

APPEARS IN

Frank Economics [English] Class 12 ISC
Chapter 13 Money: Meaning and Functions
TEST YOURSELF QUESTIONS | Q 10. | Page 264
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×