General Knowledge · Economics
Identify the false statement in the context of money supply.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Credit money refers to money whose money value is more than its commodity value.
- 2The money held by the government is not included in the measure of money supply.
- 3Commercial banks use primary deposits to create credit.
- 4Total stock of money alone in an economy determines the overall liquidity in the economy.✓
Correct answer
Total stock of money alone in an economy determines the overall liquidity in the economy.
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