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Money includes
- a)currencies and demand deposits
- b)bonds, government securities
- c)equity shares
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
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Money includesa)currencies and demand depositsb)bonds, government secu...
Explanation:
Currencies and Demand Deposits:
- Money includes currencies such as coins and banknotes that are in circulation as a medium of exchange.
- Demand deposits refer to funds held in checking accounts that can be withdrawn on demand, making them readily available for use in transactions.
Bonds, Government Securities:
- Bonds and government securities are also considered as forms of money as they hold value and can be easily converted into cash.
- Bonds represent debt instruments issued by companies or governments in exchange for capital, with the promise of repayment at a future date with interest.
- Government securities are debt instruments issued by the government to finance its operations and are considered secure investments.
Equity Shares:
- Equity shares represent ownership in a company and are considered a form of money as they can be bought and sold in the stock market.
- Shareholders have ownership rights in the company and may receive dividends as a return on their investment.
All of these:
- Money encompasses currencies, demand deposits, bonds, government securities, and equity shares as they all serve as mediums of exchange, store of value, and unit of account in an economy.
- These various forms of money play a crucial role in facilitating transactions, investments, and economic activities.
Currencies and Demand Deposits:
- Money includes currencies such as coins and banknotes that are in circulation as a medium of exchange.
- Demand deposits refer to funds held in checking accounts that can be withdrawn on demand, making them readily available for use in transactions.
Bonds, Government Securities:
- Bonds and government securities are also considered as forms of money as they hold value and can be easily converted into cash.
- Bonds represent debt instruments issued by companies or governments in exchange for capital, with the promise of repayment at a future date with interest.
- Government securities are debt instruments issued by the government to finance its operations and are considered secure investments.
Equity Shares:
- Equity shares represent ownership in a company and are considered a form of money as they can be bought and sold in the stock market.
- Shareholders have ownership rights in the company and may receive dividends as a return on their investment.
All of these:
- Money encompasses currencies, demand deposits, bonds, government securities, and equity shares as they all serve as mediums of exchange, store of value, and unit of account in an economy.
- These various forms of money play a crucial role in facilitating transactions, investments, and economic activities.
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Money includesa)currencies and demand depositsb)bonds, government securitiesc)equity sharesd)All of theseCorrect answer is option 'D'. Can you explain this answer?
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