CUET Economics PYQs

Suppose in an economy, the legal Required ratio fixed by the Central Bank is 20% and the value of initial deposits is $\overline{\mathbf{\tau}}$ 1000 crores. What is the value of loans extended by the Commercial Banks ?

When the interest rate is very high, newspapers and media channels are predicting that it may fall in future and hence anticipate capital gains from bond-holdings. Hence, people convert their money into bonds.

In the above statement, which motive of money is highlighted?

1. Transaction Motive
2. Speculative Motive
3. Demonetisation Motive
4. Precautionary Motive

To tackle the problem of corruption, black money, terrorism and the circulation of fake currency in the economy, demonetization was an initiative taken by the Government of India in the period?