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ECONOMICS-2015: Daily Answer Writing Challenge -22

ECONOMICS-2015: Daily Answer Writing Challenge – 22


  1. Would the introduction of automatic teller machines, which allows people to withdraw cash from banks as needed, make deposits more inconvenient and affect the money supply Elucidate. (2011 – 20 marks)
  2. Mention the different components of supply of money as specified by the Reserve Bank of India. In what sense is the narrow money ‘narrow’? (2012 – 20 marks)
  3. What is the difference between private and social cost-benefit? Which one of the two is more relevant to government investment decision and why? (2012 – 20 marks)
  4. Explain why money supply remains unaffected if budget deficit is met by borrowing from the public. (2012 – 20 marks)
  5. “Transaction demand for money is Interest rate elastic.” Explain in reference to the post Keynesian theories of demand for money. (2012 – 20 marks)