Page 2 - HA

8. Match the following- 1
A B
(A) Exchange of goods (I) Demand deposit
(B) Paper currency and (II) Reserve Bank of India
coins
(C) Surplus money in your (III) Barter System
bank account
(D) Issue Rupee in India (IV) Modern forms of money

9. 1

Who issue Rupee One note in India?

10. Q-In the question given below, there are two statements 1
marked as Assertion (A) and Reason (R). Read the
statements and chose the correct option:
Assertion (A): The facility of cheques against demand
deposits makes it possible to directly settle payments
without the use of cash.
Reason (R): Since demand deposits are accepted widely
as a means of payment, along with currency, they
constitute money in the modern economy.
A. Both A and R are true and R is the correct explanation
of A.
B. Both A and R are true but R is the correct explanation
of A.
C. A is correct but R is wrong.
D. A is wrong but R is correct.

SUBJECTIVE QUESTIONS

SR. QUESTION MARKS PAGE
NO. NO.
1. Q- Why are demand deposits considered as money? 1 39
2. Q- What is a cheque? 1 39
3. Q-Name the agency that issues currency notes in India. Why 1 40
do we accept these currency notes as a medium of exchange?