Economics · Economy
Consider the following statements: Statement-I: India's currency-in-circulation to GDP ratio has decreased compared to pre-demonetization levels despite an absolute increase in currency with the public. Statement-II: The nominal GDP of the economy has expanded at a rate faster than currency growth due to strong real output growth and inflation. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement-I is incorrect, but Statement-II is correct
- 2Statement-I is correct, but Statement-II is incorrect
- 3Both Statement-I and Statement-II are correct, but Statement-II is not the correct explanation for Statement-I
- 4Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I✓
Correct answer
Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I
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