Match List-I with List-II
List-I List-II (A) Percentage of deposits that a bank keep as reserve with Central Bank (I) Reserves + Loan. (B) Banks Assets (II) Central Bank of a country. (C) Lender of the last Resort (III) Aggregate Monetary Resources. (D) M₃ (IV) Cash Reserve Ratio.
Choose the correct answer from the options given below:
- (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
- (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Percentage of deposits that a bank keep as reserve with Central Bank | (I) Reserves + Loan. |
| (B) Banks Assets | (II) Central Bank of a country. |
| (C) Lender of the last Resort | (III) Aggregate Monetary Resources. |
| (D) M₃ | (IV) Cash Reserve Ratio. |
Choose the correct answer from the options given below:
- (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
- (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution
Option 2: (A) - (IV), (B) - (I), (C) - (II), (D) - (III) -> Let's match each item correctly:
(A) Percentage of deposits that a bank keeps as reserve with Central Bank = (IV) Cash Reserve Ratio - CRR is the mandatory percentage of deposits commercial banks must maintain with the central bank.
(B) Banks Assets = (I) Reserves + Loan - A bank's primary assets consist of reserves (cash and deposits with central bank) and loans given to customers.
(C) Lender of the last Resort = (II) Central Bank of a country - The central bank provides emergency liquidity to commercial banks when they face financial difficulties.
(D) M₃ = (III) Aggregate Monetary Resources - M₃ is the broadest measure of money supply, including currency, deposits, and other liquid assets, representing total monetary resources in the economy. -> correct
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