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Money includes :
  • a)
    Currencies and demand deposits.
  • b)
    Bonds, government securities.
  • c)
    Equity shares.
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
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Money includes :a)Currencies and demand deposits.b)Bonds, government s...
Money- An Overview

Money is a medium of exchange that is widely accepted as a means of payment for goods and services. It is an essential element of any modern economy as it facilitates exchange, trade, and commerce.

Forms of Money

Money can take many forms, including:

1. Currencies and Demand Deposits
Currencies, including coins and banknotes, are the most common form of money. Demand deposits are also a form of money that allows individuals to withdraw funds from their bank accounts at any time.

2. Bonds and Government Securities
Bonds and government securities are financial instruments that represent a loan to an organization or government. They are a form of money because they can be bought and sold like other assets.

3. Equity Shares
Equity shares represent ownership in a company and are another form of money. They can be bought and sold on stock exchanges, and their value can fluctuate depending on market conditions.

All of the Above

Money includes currencies and demand deposits, bonds and government securities, and equity shares. Hence, option 'D' is the correct answer.
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Features of a Mixed Economy:A mixed economy is an economic system that combines elements of both a market economy and a planned economy. It incorporates features of both private enterprise and government intervention. The correct answer is D, as all of the following features are characteristic of a mixed economy:1. Planned economy:A mixed economy includes elements of a planned economy, where the government plays a role in guiding and regulating economic activities. It formulates economic plans and policies to ensure the efficient allocation of resources and to promote economic stability.2. Dual system of pricing:In a mixed economy, there exists a dual system of pricing, which means that both market prices and government-set prices coexist. While market forces determine prices for most goods and services, the government may intervene to regulate prices in certain sectors to protect consumers or promote social welfare.3. Balanced regional development:Another characteristic of a mixed economy is the emphasis on balanced regional development. The government intervenes to ensure that economic growth and development are not concentrated in specific regions or industries but are spread across different regions and sectors. This helps to reduce regional disparities and promote overall economic stability and social welfare.Benefits of a Mixed Economy:A mixed economy offers several benefits due to its combination of market forces and government intervention. Some of these benefits include:1. Economic efficiency:By incorporating market mechanisms, a mixed economy allows for resource allocation based on supply and demand, which promotes economic efficiency. Market forces encourage competition, innovation, and productivity, leading to higher levels of economic growth.2. Social welfare:Government intervention in a mixed economy enables the provision of public goods and services that may not be adequately provided by the market alone. This includes areas such as healthcare, education, infrastructure, and social security, ensuring a certain level of social welfare and equity.3. Stability and regulation:The government's role in a mixed economy helps to maintain economic stability through macroeconomic policies such as fiscal and monetary measures. It also regulates certain sectors to prevent market failures, protect consumer rights, and ensure fair competition.Conclusion:A mixed economy combines the advantages of both market forces and government intervention. It allows for economic efficiency, social welfare, and stability. The features of a mixed economy include elements of a planned economy, a dual system of pricing, and balanced regional development. These features work together to create a system that promotes both economic growth and social welfare.

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Money includes :a)Currencies and demand deposits.b)Bonds, government securities.c)Equity shares.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Money includes :a)Currencies and demand deposits.b)Bonds, government securities.c)Equity shares.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Money includes :a)Currencies and demand deposits.b)Bonds, government securities.c)Equity shares.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Money includes :a)Currencies and demand deposits.b)Bonds, government securities.c)Equity shares.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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