Match List-I with List-II
List-I List-II (A) Lender of last resort (I) 1/Cash reserve ratio (B) Money multiplier (II) Buying and selling government securities (C) Open market operations (III) RBI (D) = kPY (IV) Transaction demand for money is positively related to the real income of an economy.
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Lender of last resort | (I) 1/Cash reserve ratio |
| (B) Money multiplier | (II) Buying and selling government securities |
| (C) Open market operations | (III) RBI |
| (D) = kPY | (IV) Transaction demand for money is positively related to the real income of an economy. |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
The RBI acts as lender of last resort to banks (A-III). The money multiplier equals (B-I). Open market operations mean buying and selling government securities by the RBI (C-II). shows transaction demand for money rising with real income (D-IV).
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