Money and Banking Discussion Assignment

Money and Banking Discussion Assignment
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Money and Banking Discussion Assignment
1. Which one of the following money
supplies is also known as Narrow
Money in the Indian economy?
(a) M1 (b) M2
(c) M3 (d) M4
2. Which one of the following agencies of
the Indian Government publishes the
Narrow Money (M1) and Broad Money
(M3) on fortnightly basis?
(a) State Bank of India
(b) Security Exchange Board of India
(c) Reserve Bank of India
(d) Central Statistical Organisation
3. Which one of the following money
supplies in the Indian economy consist
the total post office savings?
(a) M1 (b) M2 (c) M3 (d) M4
4. The Reserve Bank of India defines
Narrow Money as [Astt. Comm. 2018]
(a) CU (currency notes coins) DD
(net demand deposits held by
commercial banks).
(b) CU DD saving deposits with post
office savings banks.
(c) CU DD net time deposits of
commercial banks.
(d) CU DD net time deposits of
commercial banks total deposits
of post offices.
5. Which one among the following is the
total amount of money available in an
economy at a specific time?
(a) Near money (b) Narrow money
(c) Money volume (d) Money stock
6. Which one among the following is the
source of the Reserve Money in India?
(a) Net foreign exchange assets of RBI.
(b) Governments currency liabilities to
the public.
(c) Net non-monetary liabilities of the
RBI.
(d) All of the above
Money and Banking Discussion Assignment
7. The money multiplier in an economy
increases with which one of the
following? [IAS (Pre) 2019]
(a) Increase in the cash reserve ratio.
(b) Increase in the banking habit of the
population.
(c) Increase in the statutory liquidity ratio.
(d) Increase in the population of the
country.
8. Multipliers will be lower with which one
of the following? [Astt. Comm. 2018]
(a) High marginal propensity to
consume.
(b) Low marginal propensity to consume.
(c) High marginal propensity to invest.
(d) Low marginal propensity to save.
9. The higher rate of expansion in
currency with the public and reserves
as compared to that in deposits in an
economy leads to
(a) the money multiplier remains
unchanged.
(b) increases at the first then decreases
later on.
(c) an increase in the money multiplier.
(d) a decrease in the money multiplier.
10. Which one of the following is the major
component of the money supply in the
Indian Economy?
(a) Currency component
(b) Deposit component
(c) Treasury bills with public
(d) Both (a) and (b)
11. If you withdraw ` 1,00,000 in cash from
your Demand Deposit Account at your
bank, the immediate effect on aggregate
money supply in the economy will be
[IAS (Pre) 2020]
(a) to reduce it by ` 1,00,000.
(b) to increase it by ` 1,00,000.
(c) to increase it by more than
` 1,00,000,
(d) to leave it unchanged.
12. Foreign currency which has a tendency of
quick migration is called [BPSC 2015]
(a) Hot currency
(b) Gold currency
(c) Soft currency
(d) Hard currency
13. Which one among the following is the
globally traded currency that can serve
as a reliable and stable store of value?
(a) Soft currency
(b) Broad currency
(c) Local currency
(d) Hard currency
14. Which one among the following is
correct about the money whose value
comes from a commodity out of which it
is made?
(a) Fiat money
(b) Commodity money
(c) Near money
(d) Electronic money
15. Which of the following is the correct
definition of Hot Money?
(a) This is the fund which is dumped into
a country to get the advantage of a
favourable interest rate and hence
bring high returns.
(b) This is the fund which is provided by
a bank in US Dollar at very short
notice at a very high rate of interest
and for a longer period of repayment.
(c) This is the fund which is pushed into
market through Hawala or some other
such illegal method and is sometime
referred to also as Black money.
(d) Both (a) and (c)
16. Which one of the following pairs is
correctly matched?
(a) M0 – Reserve Money
(b) M1 – Broad Money
(c) M2 – Narrow Money
(d) None of the above
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