Practice Components of Money Supply - 2.1 | Chapter 3: Money and Banking | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does M0 include?

πŸ’‘ Hint: Think about coins and paper money.

Question 2

Easy

What is included in M1?

πŸ’‘ Hint: Consider checking accounts.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does M0 consist of?

  • Demand deposits
  • Physical currency
  • Savings accounts

πŸ’‘ Hint: Think about cash money.

Question 2

True or False: M1 includes physical currency and savings accounts.

  • True
  • False

πŸ’‘ Hint: Consider the definitions of M1 and M2.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Analyze the implications of a central bank increasing M0 without changing interest rates. What could be positive or negative outcomes?

πŸ’‘ Hint: Consider the balance between money supply and controlled inflation.

Question 2

Determine how a decline in M2 might signal future economic trends. What indicators should policymakers monitor?

πŸ’‘ Hint: Think about consumer behavior and how it reflects in the larger economy.

Challenge and get performance evaluation