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question_answer1)
A farmer exchanges wheat for cloth. This system of exchange is referred to as ......... .
A)
Barter done
clear
B)
Monetary Exchange done
clear
C)
Self-consumption done
clear
D)
None of these done
clear
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question_answer2)
'A' has a good that 'B' wants and 'B' has a good that 'A' wants. This is referred to as ............... under barter system of exchange.
A)
Unit of account done
clear
B)
Store of value done
clear
C)
Double coincidence of want done
clear
D)
None of the above done
clear
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question_answer3)
............ money refers to the money backed by the authority of the government.
A)
Legal done
clear
B)
Fiat done
clear
C)
Authorised done
clear
D)
Allot these done
clear
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question_answer4)
Cheques are examples of............ money.
A)
Fiduciary done
clear
B)
Legal done
clear
C)
Fiat done
clear
D)
None of these done
clear
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question_answer5)
Money is used as a standard for deferred payments.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer6)
In credit money, the money value is less than the commodity value.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer7)
Loans offered by commercial banks ......... the money supply in the economy. (CBSE 2020, Modified)
A)
Increase done
clear
B)
Decrease done
clear
C)
Unchanged done
clear
D)
None of these done
clear
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question_answer8)
In the present COVID-19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI). You have suggested that as the supervisor of commercial banks, ................ of the money supply be ensured, by the Reserve Bank of India (RBI).
A)
Restriction done
clear
B)
Release done
clear
C)
Either [a] or [b] done
clear
D)
None of the above done
clear
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question_answer9)
Supply of money refers to ......... . (CBSE SQP 2020-21)
A)
currency held by the public done
clear
B)
currency held by Reserve Bank of India(RBI) done
clear
C)
currency held by the public and demand deposits with commercial banks done
clear
D)
currency held in the government account done
clear
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question_answer10)
......... is the agent and adviser to the Government of India. (CBSE 2020, Modified)
A)
RBI done
clear
B)
Commercial Banks done
clear
C)
Ministry of Finance done
clear
D)
None of the above done
clear
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question_answer11)
The main aim of monetary policy is (CBSE 2020)
A)
to bring price stability in the economy. done
clear
B)
employment generation in the country. done
clear
C)
to increase trade surplus. done
clear
D)
to generate greater tax revenue. done
clear
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question_answer12)
'All financial institutions are banking institutions.' (CBSE 2020, Modified)
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer13)
Write the correct pair.
| Column I | | Column II |
A. | C + DD + OD + Net Time Deposits with Commercial Banks | (i) | \[{{M}_{1}}\] measure of money supply |
B. | C + DD + OD + Deposits with Post Office Saving Bank | (ii) | \[{{M}_{2}}\] measure of money supply |
C. | C + DD + OD +Total Deposits of Post Office Saving Bank | (iii) | \[{{M}_{3}}\] measure of money supply |
D. | C + DD + OD | (iv) | \[{{M}_{4}}\] measure of money |
A)
A - (i) done
clear
B)
B - (ii) done
clear
C)
C - (iii) done
clear
D)
D - (iv) done
clear
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question_answer14)
Match the correct pair from given below.
| Column I | | Column II |
A. | Limited Legal Tender | (i) | RBI |
B. | Unlimited Legal Tender | (ii) | Coins |
C. | Banker to the Public | (iii) | Currency Notes |
D. | Banker to the Government Banks | (iv) | Commercial |
Choose from the options given below.
A)
A-(i) B-(iii) C-(ii) D-(iv) done
clear
B)
A-(ii) B-(i) C-(iv) D-(iii) done
clear
C)
A-(ii) B-(iii) C-(iv) D-(i) done
clear
D)
A-(ii) B-(iv) C-(i) D-(iii) done
clear
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question_answer15)
Choose the incorrect pair from the given below.
|
Column I |
|
Column II |
A. |
Currency Authority |
(i) |
RBI |
B. |
Creator of Money Banks |
(ii) |
Commercial |
C. |
Issuer of Limited Legal Tender |
(iii) |
Central Government |
Choose from the option below.
A)
A-(i) done
clear
B)
B-(ii) done
clear
C)
C-(iii) done
clear
D)
All of the above pairs are correct done
clear
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question_answer16)
Value of Money Multiplier ......... with an increase in Cash Reserve Ratio. (CBSE SQP 2019-20)
A)
Increase done
clear
B)
Decrease done
clear
C)
Remain unchanged done
clear
D)
None of these done
clear
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question_answer17)
Choose the incorrect pair from given below.
| Column I | | Column II |
A. | \[{{M}_{1}}\] | (i) | Narrow Money |
B. | \[{{M}_{2}}\] | (ii) | Monetary Base |
C. | \[{{M}_{3}}\] | (iii) | Broad Money |
Choose from the options given below.
A)
A - (i) done
clear
B)
B - (ii) done
clear
C)
C - (iii) done
clear
D)
All of the above pairs are incorrect done
clear
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question_answer18)
\[{{M}_{1}}\]= Currency will Public +......... + Other Deposits with RBI
A)
Time deposits with post offices done
clear
B)
Demand deposits with commercial banks done
clear
C)
Time deposits with commercial banks done
clear
D)
Demand deposits with post offices done
clear
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question_answer19)
Which of the following is not a part of \[{{M}_{1}}\]?
A)
Time deposit done
clear
B)
Demand deposit done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer20)
Money multiplier is equal to
A)
1/CRR done
clear
B)
1/SLR done
clear
C)
1/LRR done
clear
D)
None of these done
clear
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question_answer21)
If LRR is equal to 25%, what will be the value of credit multiplier?
A)
4 done
clear
B)
5 done
clear
C)
6 done
clear
D)
Can't be determined done
clear
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question_answer22)
At a given point in time, money multiplier is equal to 10. What will be the value of legal reserve ratio?
A)
10% done
clear
B)
15% done
clear
C)
20% done
clear
D)
25% done
clear
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question_answer23)
What will be the total amount of money created in the system if legal reserves ratio is 20% and primary deposits are Rs. 1,000?
A)
Rs. 1,000 done
clear
B)
Rs. 2,000 done
clear
C)
Rs. 3,000 done
clear
D)
Rs. 5,000 done
clear
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question_answer24)
Which of following measures of money supply is considered as monetary base?
A)
\[{{M}_{1}}\] done
clear
B)
\[{{M}_{2}}\] done
clear
C)
\[{{M}_{3}}\] done
clear
D)
\[{{M}_{4}}\] done
clear
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question_answer25)
Which of the following is / are not an assumption(s) of credit creation process? |
(i) Entire banking system is taken as a single unit. |
(ii) All transactions are done through banks. |
(iii) There is no saving in the economy. |
A)
Only (i) done
clear
B)
Only (ii) done
clear
C)
Only (iii) done
clear
D)
Both (i) and (ii) done
clear
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question_answer26)
Dear money policy of central bank, which is used to keep the growth steady and in-line with other economic factors, refers to
A)
Tighten the money supply in the economy done
clear
B)
Ease the money supply in the economy done
clear
C)
Allow commercial banks to work under less strict environment done
clear
D)
Both [b] and [c] done
clear
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question_answer27)
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | | Column II |
A. | Accept deposits | (i) | Central Bank |
B. | Lender of last resort | (ii) | Qualitative instrument |
C. | Margin requirements | (iii) | Quantitative instrument |
D. | Statutory Liquidity Ratio (SLR) | (iv) | Commercial Bank |
Codes
A)
A-(i) B-(ii) C-(iii) D-(iv) done
clear
B)
A-(ii) B-(iii) C-(iv) D-(i) done
clear
C)
A-(iii) B-(iv) C-(i) D-(ii) done
clear
D)
A-(iv) B-(i) C-(ii) D-(iii) done
clear
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question_answer28)
Identify the incorrect statement from given below.
A)
Present currency can work as money as it is a legal tender. done
clear
B)
Coins held by the public are limited legal tender. done
clear
C)
Central bank prints currency in India. done
clear
D)
Central bank do not deal with general public. done
clear
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question_answer29)
Credit creation depends on ......... .
A)
Initial level of deposit done
clear
B)
Money multiplier done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer30)
Choose the correct statement from given below.
A)
Commercial banks create credit out of primary deposits. done
clear
B)
Money multiplier is directly related to legal reserve ratio. done
clear
C)
Central bank of the country is not authorised to maintain foreign exchange reserve. done
clear
D)
All of the above done
clear
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question_answer31)
Gross demand deposits include inter-bank claims whereas net demand deposits do not include inter-bank claims.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer32)
Which of the following systems is followed by Reserve Bank of India for issuing currency?
A)
Minimum reserve system done
clear
B)
Proportionate system done
clear
C)
Fixed fiduciary issue system done
clear
D)
Simple deposit system done
clear
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question_answer33)
Central Bank of a country does not deal with...........
A)
State Government done
clear
B)
General Public done
clear
C)
Central Government done
clear
D)
Commercial banks done
clear
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question_answer34)
India legal reserve ratio is set by the commercial banks.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer35)
Who regulates money supply?
A)
Government of India done
clear
B)
Reserve Bank of India done
clear
C)
Commercial Bank done
clear
D)
Planning Commission done
clear
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question_answer36)
Central Bank prints currency in the country.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer37)
The Central Bank is the sole supplier of money in an economy.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer38)
Which of the following reserves is kept with the commercial banks?
A)
Cash Reserve Ratio done
clear
B)
Statuary Liquidity Ratio done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer39)
........... refers to money backed by the order or authority of the government.
A)
Legal tender money done
clear
B)
Fiduciary money done
clear
C)
Fiat money done
clear
D)
Both [a] and [c] done
clear
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question_answer40)
What is meant by cash reserve ratio?
A)
Fraction of total deposits kept with banks done
clear
B)
Fraction of time deposits kept with banks done
clear
C)
Fraction of demand deposits kept with banks done
clear
D)
None of the above done
clear
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question_answer41)
Credit Cards are issued by ..........
A)
Commercial Banks done
clear
B)
Central Bank done
clear
C)
General Government done
clear
D)
Both [a] and [b] done
clear
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question_answer42)
Non-Chequable deposits are those
A)
Against which no money can be withdrawn done
clear
B)
Against which money can be withdrawn but cheque done
clear
C)
They have a fixed maturity done
clear
D)
Both [a] and [c] done
clear
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question_answer43)
Which of the following is/are the important component(s) of credit creation process?
A)
Legal reserves done
clear
B)
Bank rate done
clear
C)
Primary deposits done
clear
D)
Both [a] and [c] done
clear
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question_answer44)
Which of the following is the short-term borrowing rate of commercial bank?
A)
Bank rate done
clear
B)
Repo rate done
clear
C)
Reverse rate done
clear
D)
Both [a] and [b] done
clear
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question_answer45)
If total amount of money created in the system is Rs. 10,000 with legal reserve ratio being 25%. How much will be the primary deposits?
A)
Rs. 1,500 done
clear
B)
Rs. 2,000 done
clear
C)
Rs. 2,500 done
clear
D)
Rs. 4,000 done
clear
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question_answer46)
The rate at which commercial banks park their excess reserves is known as
A)
Repo rate done
clear
B)
Bank rate done
clear
C)
Open market sales done
clear
D)
Reverse repo rate done
clear
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question_answer47)
The volume and direction of money supply in the economy is controlled by..........
A)
Commercial Banks done
clear
B)
Central Bank done
clear
C)
Central Government done
clear
D)
Both [b] and [c] done
clear
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