Which of the following options correctly explains the functions of money?

(A) Medium of exchange

(B) Measure of account

(C) Store of value

(D) Quality measuring standard

Choose the correct answer from the options given below:

Arrange the following money measures into their high to low liquid form.

(A) M4

(B) M2

(C) M1

(D) M3

Choose the correct answer from the options given below:

An economy is facing inflationary pressures and the central bank of the country has been asked to control the situation. Arrange the action and result in sequential order.

(A) Credit has become costlier and people stop borrowing.

(B) Increase in Repo rate by the central bank.

(C) Reduction in the money supply and aggregate demand falls.

(D) Increase in the market lending rate by commercial banks.

Choose the correct answer from the options given below:

Arrange the following measures of money supply (monetary aggregates) in increasing order of liquidity.

A. CU + DD where CU is currency held by the public and DD is net demand deposits of banks

B. CU + DD + Savings 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 with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market?

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

Why does central bank is called the lender of last resort?

1. It lends money to the government to finance its budget deficit.
2. Central bank lends money to trade and industry to support their export operations.
3. When a country runs out of money, the central bank prints more money.
4. Central bank lends money to banks at all times.