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Identify the correct combination of List A and List B: List A List B A. Nominal GDP
Question

Identify the correct combination of List A and List B:

List A
List B
A.
Nominal GDP
I.
Currency notes, coins and demand deposits held by the public in commercial banks
B.
Real GDP
II.
GDP evaluated at constant prices
C.
Fiat money
III.
Money with no intrinsic value
D.
Narrow money
IV.
GDP evaluated at current market prices
Choose the correct answer from the options given below:

A.

A-IV, B-II, C-III, D-I

B.

A-I, B-III, C-II, D-IV

C.

A-III, B-II, C-IV, D-I

D.

A-IV, B-II, C-I, D-III

Correct option is A

The correct combination is: (A). A-IV, B-II, C-III, D-I
 match them correctly:

List A

List B

A. Nominal GDP

IV. GDP evaluated at current market prices

B. Real GDP

II. GDP evaluated at constant prices

C. Fiat money

III. Money with no intrinsic value

D. Narrow money

I. Currency notes, coins, and demand deposits held by the public in commercial banks

Here’s the explanation for each pair:
  •  Nominal GDP: This is GDP evaluated at current market prices.
  •  Real GDP: This is GDP evaluated at constant prices.
  •  Fiat money: This is money with no intrinsic value.
  •  Narrow money: This refers to currency notes, coins, and demand deposits held by the public in commercial banks.

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