Macro

Money & Banking

Medium

Economics all across the globe are facing the problem of deficient demand post covid 19. Such a situation in India can be corrected by : (Choose the correct alternative).

Selling government securities to the Commercial Banks by the Reserve Bank of India.

Raising of the margin requirements by the Reserve Bank of India.

Reducing the reverse repo rate by the Reserve Bank of India.

Raising of the bank rate by the Reserve Bank of India.

✅ Correct Option: 3

Deficient demand requires expansionary monetary policy to increase money supply and credit. Selling securities, raising margin requirements and raising the bank rate are contractionary. Reducing the reverse repo rate discourages banks from parking surplus with RBI, pushing them to lend more, which expands credit and demand.

2023: 1 June Shift 1

Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :

2026: 12 May Shift 1

Which among the following limits the money multiplier process?

2025: 21 May Shift 1

Currency notes and coins are termed as ________.

2022: 30 Aug Shift 2

In India currency notes are issued by _______.

2025: 3 June Shift 1

Mr. Kishore, an economics teacher, was explaining the concept of 'minimum percentage of total deposits to be kept by any commercial bank with the Central bank of the country, as per norms and statute prevailing in the country'.

From the following, choose the correct alternative which specifies towards the concept explained by him:

2025: 30 May Shift 2

When the Reserve Bank of India was established?

Economics all across the globe are facing the problem of deficient demand post covid 19. Such a situation in India can be corrected by : (Choose the correct alternative).

Solution

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