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CBSE-Economics-Class-12-2017-->View question

Asked On2017-07-19 05:21:47 by:Aparna-Dasgupta

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Taxes are classified as direct and indirect depending on their 'final burden'.
A direct tax is the one the final burden of which  is borne by the person on whom it is imposed. Example: income tax and wealth tax.
An indirect tax is the one the final burden of which can be shifted to other persons. Example: sales tax and goods and services tax.

Answerd on:2022-01-13 Answerd By:Muskan-Kumari

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Money supply means the total stock of money in circulation among the people at a particular point of time in an economy.
Money supply consists of various components as follows: Demand, time and saving deposits in commercial banks, and other types of deposits are the total amount of money in an economy. Definition of supply of money varies depending
on the components which are included and excluded.
M1 = Currency with the public + demand deposits with the commercial banks + deposits kept by commercial banks with the Reserve Bank.
or M1 = C + DD + OD
Demand deposits are not for any specific period of time. They can be withdrawn as
and when required. Demand deposits are chequeable deposits.
 M2 = M1 + Savings deposits with Post office Savings banks.
Saving deposit includes the features of both demand and term deposits.
  M3 = M2 + Term deposits in Commercial banks.
Term deposits are always for a specific period of time. They cannot withdraw
money as when required. They are not chequeable deposits as we cannot sign a
cheque against these deposits.

Answerd on:2017-07-20 Answerd By:milan-ransingh

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