Q1:
23rd May Shift 1
Macro > Money & Banking
Easy
Suppose the initial deposits are Rs.1000 cr and the Statuary Liquidity Ratio is 20%. How much loan the bank can give from the given initial deposits?
Correct Answer
Option 1
Correct Answer
CUET Economics Macro > Money & Banking PYQs
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Q2:
23rd May Shift 1
Macro > Money & Banking
Easy
Identify the liabilities of the commercial banks from the following:
Correct Answer
Option 1
Correct Answer
Q3:
23rd May Shift 1
Macro > Money & Banking
Medium
Select the option which correctly describe the feature of Reverse Repurchase Agreement.
Correct Answer
Option 3
Correct Answer
Q4:
23rd May Shift 1
Macro > Money & Banking
Easy
Which of the following are the functions of money? A. Intermediary between the buyer and the seller. B. Expressing goods in monetary units. C. Helps in deferred payments. D. Helps in making a cashless society. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q5:
21st May Shift 1
Macro > Money & Banking
Easy
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:
Correct Answer
Option 2
Correct Answer
Q6:
21st May Shift 1
Macro > Money & Banking
Easy
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) $M^d_t$ = 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:
Correct Answer
Option 2
Correct Answer
Q7:
21st May Shift 1
Macro > Money & Banking
Medium
Which of the following are correct about money measures? (A) M1 = CU + DD (B) M2 = M1 + Savings deposits with commercial banks (C) M3 = M1 + Net time deposits of commercial banks (D) M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates) Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q8:
21st May Shift 1
Macro > Money & Banking
Easy
Which of the following are the correct combinations of monetary instruments of RBI to regulate money supply in the economy? (A) Bank rate (B) Cash reserve ratio (C) Savings bank interest rate for public (D) Repo rate Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q9:
6th June Shift 1
Macro > Money & Banking
Easy
Money
Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.
Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.
Which of the following is the quantitative tool of money supply used by Central Bank?
Correct Answer
Option 3
Correct Answer
Q10:
6th June Shift 1
Macro > Money & Banking
Easy
Money
Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.
Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.
In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market?
Correct Answer
Option 4
Correct Answer
Q11:
6th June Shift 1
Macro > Money & Banking
Easy
Money
Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.
Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.
To discourage the lending by commercial bank which of the following tool can be used by Central Bank?
Correct Answer
Option 2
Correct Answer
Q12:
6th June Shift 1
Macro > Money & Banking
Easy
Money
Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.
Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.
Who is the lender of last resort?
Correct Answer
Option 4
Correct Answer
Q13:
6th June Shift 1
Macro > Money & Banking
Easy
Money
Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.
Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.
The interest rate at which the money is lent by the central bank with agreement of purchase that has specifications about date and price of resale of this security. This rate is called___
Correct Answer
Option 2
Correct Answer
Q14:
31st May Shift 1
Macro > Money & Banking
Medium
Which one of the following is not used as a basis for credit creation?
Correct Answer
Option 1
Correct Answer
Q15:
31st May Shift 1
Macro > Money & Banking
Medium
Which of the following measure of monetary policy can be used to reduce the excess money supply from the economy?
Correct Answer
Option 3
Correct Answer
Q16:
31st May Shift 1
Macro > Money & Banking
Medium
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:
Correct Answer
Option 3
Correct Answer
Q17:
31st May Shift 1
Macro > Money & Banking
Medium
Which of the following statements are correct about monetary policy instruments of RBI? A. Bank rate is the rate at which RBI lends to commercial banks for long term. B. Repo rate is the rate at which RBI lends to commercial banks for short period. C. Open market operation is the buying and selling of government securities by RBI to regulate money supply. D. Reverse repo rate is the rate at which RBI lends to commercial banks for medium period. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q18:
21st May Shift 2
Macro > Money & Banking
Easy
Who is the custodian of the foreign exchange reserves of the economy?
Correct Answer
Option 1
Correct Answer
Q19:
21st May Shift 2
Macro > Money & Banking
Easy
Identify the correct money multiplier formula.
Correct Answer
Option 2
Correct Answer
Q20:
21st May Shift 2
Macro > Money & Banking
Easy
Which measure of money supply is least liquid among the following?
Correct Answer
Option 4
Correct Answer
Q21:
21st May Shift 2
Macro > Money & Banking
Easy
Arrange the following statements in the context of impact on money supply by using Open Market Operations (OMO) tool. A. RBI buys a Government bond in the open market. B. It leads to increase in money supply. C. RBI Pays through cheque to the commercial banks. D. Thus increases the credit creation capacity of commercial banks. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q22:
20th May Shift 1
Macro > Money & Banking
Easy
Match List-I with List-II | List-I | List-II | |---|---| | (A) M1 | (I) M1 + Net time deposits of commercial banks | | (B) M2 | (II) CU +DD | | (C) M3 | (III) M3+Total deposits with Post Office savings organisations (Except NSC). | | (D) M4 | (IV) M1 + Saving deposits with post office saving banks. | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q23:
20th May Shift 1
Macro > Money & Banking
Medium
Policy tools to control money supply by the RBI are given below. Identify the correct statements. (A) Persuasion is a qualitative tool of RBI. (B) RBI influences money supply through open market operation. (C) Outright open market operations are temporary in nature. (D) Selling of a bond by RBI leads to reduction in quantity of reserves. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q24:
20th May Shift 1
Macro > Money & Banking
Easy
Which of the following is not a qualitative tool of Reserve Bank Of India ?
Correct Answer
Option 3
Correct Answer
Q25:
20th May Shift 1
Macro > Money & Banking
Easy
Given, Staturary Liquid Ratio=20% A comercial bank deposits=Rs.1200 How much money the bank can give as a loan ?
Correct Answer
Option 2
Correct Answer
Q26:
19th May Shift 2
Macro > Money & Banking
Easy
Arrange the following alternative measures of money supply in decreasing order of liquidity. Where CU= Currency and DD = Demand Deposit A. CU + DD B. CU + DD + Net time deposits of commercial banks C. CU + DD + Savings deposits with Post Office savings banks D. CU +DD + Net time deposits of commercial banks +Total deposits with Post Office savings organizations (excluding NSC) Choose the correct sequence from the options given below:
Correct Answer
Option 2
Correct Answer
Q27:
19th May Shift 2
Macro > Money & Banking
Easy
The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Identify the INCORRECT statement from the following in this context.
Correct Answer
Option 4
Correct Answer
Q28:
19th May Shift 2
Macro > Money & Banking
Easy
The transaction demand for money in an economy can be written in the following form as, $\frac{1}{k}.M_t^d = T$, or $v.M_t^d = T$ in the above expression v refers to:
Correct Answer
Option 1
Correct Answer
Q29:
19th May Shift 2
Macro > Money & Banking
Medium
Consider the following statements regarding the demand for money and choose the correct statements. A. Speculative demand for money is inversely related to the rate of interest. B. Demand for money balance is often referred to as transaction preference. C. People desire to hold money broadly for speculative and transaction motive. D. Transaction demand for money is inversely related to the real income of an economy. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q30:
15th May Shift 1
Macro > Money & Banking
Easy
In commercial banks, saving and current account deposits are held by the public. There are other deposits like fixed deposits, having a fixed period to maturity and are referred to as _______________.
Correct Answer
Option 2
Correct Answer
Q31:
15th May Shift 1
Macro > Money & Banking
Easy
In a Commercial Bank, if the initial deposit of Rs 1000 create deposits of Rs 5000, then the cash reserve ratio will be_________.
Correct Answer
Option 3
Correct Answer
Q32:
15th May Shift 1
Macro > Money & Banking
Medium
Match the LIST-I with LIST-II | LIST-I | LIST-II | |---|---| | A. The RBI gives long term loans to the commercial banks | I. Reverse repurchase agreement | | B. The RBI buys the securities through an agreement having specification about date and price of resale | II. Open market operations | | C. The RBI sell the securities through an agreement having specification about date and price at which it will be repurchased | III. Repurchase agreement | | D. Buying and selling of bonds issued by the government in the open market | IV. Bank Rate | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q33:
15th May Shift 1
Macro > Money & Banking
Easy
One of the important function of the Central bank is to provide funds to commercial banks at the time of emergency. Identify the instrument through which RBI can perform this function.
Correct Answer
Option 2
Correct Answer
Q34:
13h May Shift 2
Macro > Money & Banking
Medium
Arrange the following measures of money supply in ascending order of their liquidity. (A) Currency + Demand Deposits. (B) M1 + Net time deposits of commercial banks. (C) M1 + Savings deposits with Post Office savings banks. (D) M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates). Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q35:
13h May Shift 2
Macro > Money & Banking
Easy
Exchange of commodities without the mediation of money is called as?
Correct Answer
Option 3
Correct Answer
Q36:
13h May Shift 2
Macro > Money & Banking
Easy
Which of the following is most commonly used measures of money supply, also known as aggregate monetary resources?
Correct Answer
Option 3
Correct Answer
Q37:
13h May Shift 2
Macro > Money & Banking
Medium
When the central bank buys the security, this agreement of purchase also has specifications about the date and price of resale of this security. The rate at which these agreements are carried out is known as ?
Correct Answer
Option 1
Correct Answer
Q38:
13th May Shift 1
Macro > Money & Banking
Easy
Which of the following are the quantitative tools opted by Central bank to control money supply. (A) Cash reserve Ratio. (B) Moral Suasion. (C) Bank Rate. (D) Margin requirement. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q39:
13th May Shift 1
Macro > Money & Banking
Easy
The money supply measures, M1 and M2 are also known by which of the following term:
Correct Answer
Option 2
Correct Answer
Q40:
13th May Shift 1
Macro > Money & Banking
Easy
Match List-I with List-II | List-I | List-II | |---|---| | (A) M1 | (I) M1 + Net time deposits of commercial banks | | (B) M2 | (II) M3 +Total deposits with Post Office savings organisations(excluding NSC) | | (C) M3 | (III) CU + DD | | (D) M4 | (IV) M1 + Savings deposits with Post Office savings banks | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q41:
12th May Shift 1
Macro > Money & Banking
Easy
Arrange the following measures of money supply in decreasing order of their liquidity. (A) M4 (B) M2 (C) M1 (D) M3 Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q42:
12th May Shift 1
Macro > Money & Banking
Easy
Which among the following limits the money multiplier process?
Correct Answer
Option 2
Correct Answer
Q43:
12th May Shift 1
Macro > Money & Banking
Easy
The situation where people are willing to hold any amount of money at a very low interest rate is called?
Correct Answer
Option 3
Correct Answer
Q44:
12th May Shift 1
Macro > Money & Banking
Easy
Which of the following action by RBI leads to an increase in the supply of money in the economy:
Correct Answer
Option 2
Correct Answer
Q45:
11th May Shift 2
Macro > Money & Banking
Easy
Arrange the following statements related to open market operations, a tool used by the Reserve Bank of India to control money supply in the economy, in the correct order of occurrence: A. The total amount of reserves in the economy increases. B. RBI buys government bonds. C. As a result, money supply will increase. D. RBI pays for the bonds by providing a cheque. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q46:
11th May Shift 2
Macro > Money & Banking
Easy
From the following, choose the correct options as the functions of the Reserve Bank of India. A. Regulates the reserve requirements of commercial banks. B. Sterilizes the money supply in the economy against external shocks. C. Maintains the deposits of the public. D. Regulates money supply by controlling the stock of high-powered money. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q47:
11th May Shift 2
Macro > Money & Banking
Easy
Instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. The rate at which such agreements take place is known as-----------------.
Correct Answer
Option 3
Correct Answer
Q48:
11th May Shift 2
Macro > Money & Banking
Medium
"In India every currency note bears on its face a promise from the Governor of the Reserve Bank of India(RBI) that if someone produces the note to RBI, or any other commercial bank, the RBI will be responsible for giving the person purchasing power equal to the value printed on the note. The same is also true of coins." These currency notes and coins are also known by which of the following type of money.
Correct Answer
Option 4
Correct Answer
Q49:
11th May Shift 1
Macro > Money & Banking
Easy
Which is the apex regulatory body of the Indian banking system and in which year it came into existence?
Correct Answer
Option 3
Correct Answer
Q50:
11th May Shift 1
Macro > Money & Banking
Easy
What are the short and long term tools of lending to commercial banks by the RBI?
Correct Answer
Option 3
Correct Answer
Q51:
11th May Shift 1
Macro > Money & Banking
Easy
If the total amount of deposits with a bank is 200 crores and the Reserve Ratio (RR) is 5% then what is the maximum loanable amount which the bank can lend out in the form of a loan?
Correct Answer
Option 2
Correct Answer
Q52:
11th May Shift 1
Macro > Money & Banking
Medium
What are the broad components of money supply measure M3? A. Currency in circulation B. Net fixed deposits with the banking system C. Post office savings deposit D. Demand Deposits Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q53:
3 June Shift 2
Macro > Money & Banking
Easy
The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India? (A) India got its central bank in 1935. (B) It is the custodian of the foreign exchange reserves of the economy. (C) It controls the money supply of the country through various methods, like bank rate, open market operations etc. (D) It also acts as a bank for the banking system. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q54:
3 June Shift 2
Macro > Money & Banking
Easy
The interest rate paid by the commercial banks to depositors is lower than the rate charged from the borrowers. This difference between these two types of interest rates, called? 1. Bank Rate. 2. Spread. 3. Reserve. 4. Deposits.
Correct Answer
Option 2
Correct Answer
Q55:
3 June Shift 2
Macro > Money & Banking
Easy
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?
Correct Answer
Option 3
Correct Answer
Q56:
3 June Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Fixed period to maturity. | (I) Intrinsic Value | | (B) Currency notes and coins. | (II) M3 | | (C) Gold or silver coin. | (III) Time Deposits | | (D) Aggregate monetary resources. | (IV) Fiat Money | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q57:
3 June Shift 2
Macro > Money & Banking
Medium
The Reserve Bank of India publishes four measures of money supply. Which one of the measures is the least liquid in them?
Correct Answer
Option 4
Correct Answer
Q58:
3 June Shift 1
Macro > Money & Banking
Medium
If the central bank wants to reduce the money supply in the economy, what it may do from the following? (A) Increase bank rate. (B) Reduce cash reserve ratio. (C) Increase in Repo Rate. (D) Buy securities in the open market. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q59:
3 June Shift 1
Macro > Money & Banking
Medium
Kavish went to the supermarket with ₹5000 in his wallet to buy groceries for his family. He purchased vegetables, fruits and other household items, paying the respective prices at the counter. Which functions of money were being demonstrated in this real life scenario? (A) Unit of Labour. (B) Store of Value. (C) Medium of Exchange. (D) Measure of Creditworthiness. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q60:
3 June Shift 1
Macro > Money & Banking
Easy
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:
Correct Answer
Option 1
Correct Answer
Q61:
3 June Shift 1
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Bank Rate | (I) Securities are pledged in order to repurchase. | | (B) Open Market Operations | (II) Minimum rate at which funds are provided for long term. | | (C) Repo Rate | (III) Buying and selling of bonds issued by the government in open market. | | (D) Reverse Repo Rate | (IV) Central bank borrows funds from commercial banks. | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q62:
2 June Shift 1
Macro > Money & Banking
Medium
Arrange the following statements in sequential order. (A) Rise in prices. (B) Central Bank increases margin requirement. (C) Situation of excess demand in the economy. (D) Aggregate demand falls. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q63:
2 June Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
RBI Monetary Policy
The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.
The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy.
Correct Answer
Option 1
Correct Answer
Q64:
2 June Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
RBI Monetary Policy
The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.
A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI
Correct Answer
Option 4
Correct Answer
Q65:
2 June Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
RBI Monetary Policy
The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.
Why did Monetary Policy Committee keep its policy rate unchanged in its recent meet?
Correct Answer
Option 1
Correct Answer
Q66:
2 June Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
RBI Monetary Policy
The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.
Which of the following is not a monetary measure adopted by Reserve Bank of India?
Correct Answer
Option 3
Correct Answer
Q67:
2 June Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
RBI Monetary Policy
The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.
Repo Rate is the rate at which.
Correct Answer
Option 2
Correct Answer
Q68:
31 May Shift 1
Macro > Money & Banking
Medium
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.
Correct Answer
Option 4
Correct Answer
Q69:
31 May Shift 1
Macro > Money & Banking
Medium
Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation? 1. 20,000 2. 50,000 3. 10,000 4. 5000
Correct Answer
Option 1
Correct Answer
Q70:
31 May Shift 1
Macro > Money & Banking
Easy
Arrange the following in chronological order. (A) Barter System (B) Currency notes (C) Precious metals (D) Online transfer of money. Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)
Correct Answer
Option 2
Correct Answer
Q71:
31 May Shift 1
Macro > Money & Banking
Medium
If the market rate of interest is already low enough so that everybody expects it to rise in future, causing capital losses, nobody will wish to hold bonds. This situation is called............. 1. Jevons Paradox 2. Liquidity trap 3. Paradox of thrift 4. Double coincidence of wants
Correct Answer
Option 2
Correct Answer
Q72:
31 May Shift 1
Macro > Money & Banking
Medium
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: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (IV), (B) - (I), (C) - (II), (D) - (III) 3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Correct Answer
Option 2
Correct Answer
Q73:
30 May Shift 2
Macro > Money & Banking
Medium
Which statement is not true for M3 as a measure of money supply.
Correct Answer
Option 4
Correct Answer
Q74:
30 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Buying and selling of bonds | (I) Transaction Motive | | (B) Hold money is to carry out expenses | (II) Open Market Operations | | (C) The number of times a unit of money changes hands during the unit period | (III) Velocity of circulation | | (D) Hold money in terms of bonds | (IV) Speculative Motive | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q75:
30 May Shift 2
Macro > Money & Banking
Medium
Arrange the following in ascending order in respect of evolution of money. (A) Coin exchanges. (B) Barter exchanges. (C) E-money. (D) Paper currency. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q76:
30 May Shift 2
Macro > Money & Banking
Easy
Demonetization refers to :
Correct Answer
Option 4
Correct Answer
Q77:
30 May Shift 2
Macro > Money & Banking
Easy
When the Reserve Bank of India was established?
Correct Answer
Option 4
Correct Answer
Q78:
30 May Shift 1
Macro > Money & Banking
Medium
Instead of outright sale of securities, the Central Bank may sell securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called ________. The rate at which money is withdrawn in this manner is called________.
Correct Answer
Option 4
Correct Answer
Q79:
30 May Shift 1
Macro > Money & Banking
Medium
Quantitative instruments of monetary policy focus on : (A) Quantity of money across selected sectors of the economy. (B) Overall supply of money in the economy. (C) Credit creation capacity of commercial banks. (D) Inflationary and deflationary gaps in the economy. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q80:
30 May Shift 1
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Secondary Deposits | (i) Initial deposits with commercial banks | | (B) Primary Deposits | (ii) The ratio of money held by the public in currency to that held at deposits in commercial banks. | | (C) Currency Deposit ratio | (iii) No intrinsic value | | (D) Fiat money | (iv) Demand deposits which come back to Commercial bank through lending process. | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q81:
30 May Shift 1
Macro > Money & Banking
Medium
Which of th following system is followed by the Reserve Bank of India for issuing currency?
Correct Answer
Option 2
Correct Answer
Q82:
30 May Shift 1
Macro > Money & Banking
Medium
Arrange the following steps involved in the process of credit creation by Commercial Banks. (A) The commercial bank lends the excess reserves to the borrowers. (B) The borrowers deposit the loaned money in the bank. (C) The bank keeps a portion of the lent deposit money as reserve. (D) The initial deposit is made in the commercial bank. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q83:
30 May Shift 1
Macro > Money & Banking
Easy
Electronic transfer of money in terms of credit/ debit entries of the account-holders in the banks is called____.
Correct Answer
Option 4
Correct Answer
Q84:
29 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) $M_1$ | (I) $M_1$ + Net time deposits of commercial banks | | (B) $M_3$ | (II) Assets - Liabilities | | (C) Net Worth | (III) 1/CRR | | (D) Money Multiplier | (IV) Currency + Demand Deposit | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q85:
29 May Shift 2
Macro > Money & Banking
Medium
Consider the following steps taken by the Reserve Bank of India with respect to money supply and arrange them in the appropriate sequence. (A) Increase in lending rates by commercial banks. (B) Contraction in credit. (C) Increase in bank rates by the Reserve bank of India. (D) Increase in cost of borrowings by commercial banks. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q86:
29 May Shift 2
Macro > Money & Banking
Easy
At a given cash reserve ratio of 50% with deposits of ₹ 1000, the amount which can be used to give loans by the bank.
Correct Answer
Option 2
Correct Answer
Q87:
29 May Shift 2
Macro > Money & Banking
Easy
Suppose, in a hypothetical economy, the cash reserve ratio is 20% and initial deposits are Rs.100. The value of money which a bank can use to give as a loan in the first round would be
Correct Answer
Option 1
Correct Answer
Q88:
29 May Shift 2
Macro > Money & Banking
Medium
Arrange the following statements in chronological order with respect to open market operation. (A) Bonds payments increases total reserves in the economy. (B) RBI buys government bonds from the market. (C) RBI sell bond if there is excess money supply. (D) Higher reserves Increase money supply in the economy. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q89:
29 May Shift 1
Macro > Money & Banking
Medium
Suppose a bank has an initial deposit of ₹200. The required cash reserve ratio is 20%. Then what will be the total money supply in an economy?
Correct Answer
Option 3
Correct Answer
Q90:
29 May Shift 1
Macro > Money & Banking
Medium
During deficient demand, RBI __________ the margin.
Correct Answer
Option 1
Correct Answer
Q91:
29 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Role of Money
In modern economics, money plays a very crucial role as medium of exchange, unit of account, store of value and standard of deferred payment. The banking system, a cornerstone of financial markets, facilitates the creation and circulation of money.
Commercial banks accept deposits from the public and provide loans. A fraction of the deposits are kept by the commercial banks as reserves and the rest is lent out. This amplifies the money supply in the economy through the 'Multiplier Effect'. The RBI as central Bank regulates the money supply through monetary policy tools. These tools influence the credit availability and overall liquidity in the system, impacting inflation, growth and employment.
Which of the following are major functions of commercial banks?
Correct Answer
Option 3
Correct Answer
Q92:
29 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Role of Money
In modern economics, money plays a very crucial role as medium of exchange, unit of account, store of value and standard of deferred payment. The banking system, a cornerstone of financial markets, facilitates the creation and circulation of money.
Commercial banks accept deposits from the public and provide loans. A fraction of the deposits are kept by the commercial banks as reserves and the rest is lent out. This amplifies the money supply in the economy through the 'Multiplier Effect'. The RBI as central Bank regulates the money supply through monetary policy tools. These tools influence the credit availability and overall liquidity in the system, impacting inflation, growth and employment.
What is the process through which banks create money?
Correct Answer
Option 2
Correct Answer
Q93:
29 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Role of Money
In modern economics, money plays a very crucial role as medium of exchange, unit of account, store of value and standard of deferred payment. The banking system, a cornerstone of financial markets, facilitates the creation and circulation of money.
Commercial banks accept deposits from the public and provide loans. A fraction of the deposits are kept by the commercial banks as reserves and the rest is lent out. This amplifies the money supply in the economy through the 'Multiplier Effect'. The RBI as central Bank regulates the money supply through monetary policy tools. These tools influence the credit availability and overall liquidity in the system, impacting inflation, growth and employment.
If the reserve ratio is 20%, what is the money multiplier?
Correct Answer
Option 1
Correct Answer
Q94:
29 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Role of Money
In modern economics, money plays a very crucial role as medium of exchange, unit of account, store of value and standard of deferred payment. The banking system, a cornerstone of financial markets, facilitates the creation and circulation of money.
Commercial banks accept deposits from the public and provide loans. A fraction of the deposits are kept by the commercial banks as reserves and the rest is lent out. This amplifies the money supply in the economy through the 'Multiplier Effect'. The RBI as central Bank regulates the money supply through monetary policy tools. These tools influence the credit availability and overall liquidity in the system, impacting inflation, growth and employment.
What happens to money supply if the RBI increases the cash reserve ratio?
Correct Answer
Option 2
Correct Answer
Q95:
29 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Role of Money
In modern economics, money plays a very crucial role as medium of exchange, unit of account, store of value and standard of deferred payment. The banking system, a cornerstone of financial markets, facilitates the creation and circulation of money.
Commercial banks accept deposits from the public and provide loans. A fraction of the deposits are kept by the commercial banks as reserves and the rest is lent out. This amplifies the money supply in the economy through the 'Multiplier Effect'. The RBI as central Bank regulates the money supply through monetary policy tools. These tools influence the credit availability and overall liquidity in the system, impacting inflation, growth and employment.
Which function of money helps in comparing the value of different goods and services?
Correct Answer
Option 2
Correct Answer
Q96:
28 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Currency + Demand Deposits + Savings deposits with Post Office savings banks | (I) M4 | | (B) Currency + Demand Deposits + Net time deposits of commercial banks + Total deposits with Post Office | (II) M2 | | (C) Currency + Demand Deposits | (III) M3 | | (D) Currency + Demand Deposits + Net time deposits of commercial banks | (IV) M1 | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q97:
28 May Shift 2
Macro > Money & Banking
Easy
Given a cash reserve ratio of 50 per cent and reserves of Rs 100, what is the money multiplier?
Correct Answer
Option 2
Correct Answer
Q98:
28 May Shift 2
Macro > Money & Banking
Medium
Which initiatives strengthened the government's resolution to go cashless. (A) Jan Dhan accounts. (B) Aadhar enabled payment systems. (C) E-Wallets. (D) National financial Switch. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q99:
28 May Shift 2
Macro > Money & Banking
Easy
The banks are required to keep some reserves in liquid form with the central bank. What are they called?
Correct Answer
Option 1
Correct Answer
Q100:
28 May Shift 2
Macro > Money & Banking
Easy
When is Demonetisation, a new initiative was taken by the Government of India?
Correct Answer
Option 1
Correct Answer
Q101:
28 May Shift 1
Macro > Money & Banking
Easy
The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration: 1. Repo Rate. 2. Reverese Repo Rate. 3. Bank Rate. 4. Saving Rate.
Correct Answer
Option 3
Correct Answer
Q102:
28 May Shift 1
Macro > Money & Banking
Medium
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
Correct Answer
Option 2
Correct Answer
Q103:
28 May Shift 1
Macro > Money & Banking
Medium
Which of the following statements is correct about commercial banks ? A. Considered as Money Creating system of the Indian Economy B. They accept deposits from the public at a lower interest rate and lend out part of these funds at a higher interest rate C. The difference between the interest rate paid to depositors and charged for lending is called "Spread". D. Commercial banks in isolation control the money supply in India. Choose the correct answer from the options given below: 1. (A), (B), (C) and D 2. (A), (B) and (D) only 3. (A), (B) and (C) only 4. (A) and (D) only
Correct Answer
Option 3
Correct Answer
Q104:
28 May Shift 1
Macro > Money & Banking
Medium
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
Correct Answer
Option 2
Correct Answer
Q105:
28 May Shift 1
Macro > Money & Banking
Medium
Consider the statements about Open Market Operations (OMO): (A) OMO is a tool by which the Reserve Bank of India(RBI) controls money supply. (B) OMO is an example of Qualitative Control. (C) Selling bonds through RBI reduces the money supply. (D) Outright OMOs are permanent in nature. Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. Only (A), (B), (C) 3. Only (A), (C), (D) 4. Only (A), (D)
Correct Answer
Option 3
Correct Answer
Q106:
27 May Shift 2
Macro > Money & Banking
Easy
When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?
Correct Answer
Option 4
Correct Answer
Q107:
27 May Shift 2
Macro > Money & Banking
Medium
Which are the following statements are true: (A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. (B) Currency notes and coins are called fiat money. (C) M2 and M4 are known as broad money. (D) M1 and M2 are known as narrow money. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q108:
27 May Shift 2
Macro > Money & Banking
Easy
Central Bank is a very important institution in a modern economy. Almost every country has one central bank. India got its central bank in ......
Correct Answer
Option 1
Correct Answer
Q109:
27 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Cash Reserve Ratio | (I) Reserves + Loans | | (B) Net Worth | (II) Deposits | | (C) Assets | (III) Percentage of deposits which a bank must keep as cash reserves with the central bank | | (D) Liabilities | (IV) Assets – Liabilities | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q110:
26 May Shift 2
Macro > Money & Banking
Medium
M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources. Which of the following is not a component of M3?
Correct Answer
Option 3
Correct Answer
Q111:
26 May Shift 2
Macro > Money & Banking
Medium
Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country? (A) Repurchase agreement. (B) Moral suasion. (C) Open market operations. (D) Margin requirements. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q112:
26 May Shift 2
Macro > Money & Banking
Medium
During the period of COVID, there was an apprehension that the Indian economy might slip into recession. Therefore, to combat the situation, the Reserve bank of India reduced the Repo rate by 110 basis points. Arrange the consequences of the same in sequential order. (A) Increase in aggregate demand. (B) Reduction in the market lending rate by commercial banks. (C) Increase in money supply. (D) Increase in borrowings by the public. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q113:
26 May Shift 2
Macro > Money & Banking
Easy
The RBI can influence money supply by changing the rate at which it gives long term loans to the commercial banks. This rate is called?
Correct Answer
Option 1
Correct Answer
Q114:
26 May Shift 2
Macro > Money & Banking
Medium
Suppose an initial cash deposit of INR 100 crores has been made in a commercial bank where a total credit of INR 500 crores has been created in the economy. The required reserve ratio in this country is.............
Correct Answer
Option 3
Correct Answer
Q115:
26 May Shift 2
Macro > Money & Banking
Medium
Which of the following is a quantitative tool of credit control by the reserve bank of India?
Correct Answer
Option 1
Correct Answer
Q116:
22 May Shift 2
Macro > Money & Banking
Easy
Match List-I with List-II | List-I | List-II | |---|---| | (A) Assets | (I) Create Credit | | (B) Liabilities | (II) Firm Owes to others | | (C) Central Bank | (III) Control Credit | | (D) Commercial Banks | (IV) Firm can Claim from others | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q117:
22 May Shift 2
Macro > Money & Banking
Medium
The process of Buying and selling of bonds issued by the Government by the central bank is called.
Correct Answer
Option 1
Correct Answer
Q118:
22 May Shift 2
Macro > Money & Banking
Medium
Arrange the following statements related to money multiplier process in correct sequence. (A) The bank has Rs 140 as deposits. (B) The bank has Rs 80 to lend. (C) A bank has a initial deposits of Rs 100 and needs to keep reserves as 20 per cent. (D) The bank lends 50% of lending amount to Sonia. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q119:
22 May Shift 2
Macro > Money & Banking
Easy
Currency notes and coins cannot be refused by any citizen of the country for settlement of any kind of transaction due to which they are called __ __
Correct Answer
Option 2
Correct Answer
Q120:
22 May Shift 2
Macro > Money & Banking
Medium
Given a cash reserve ratio of 20 percent, reserves of Rs 100 create deposits of ___________?
Correct Answer
Option 3
Correct Answer
Q121:
22 May Shift 1
Macro > Money & Banking
Easy
Economic exchanges without the mediation of money are referred to as ...........
Correct Answer
Option 2
Correct Answer
Q122:
22 May Shift 1
Macro > Money & Banking
Medium
The RBI can influence money supply by changing the rate at which it gives long-term loans to commercial banks. This rate is called the...
Correct Answer
Option 2
Correct Answer
Q123:
22 May Shift 1
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A). M1 | (I). Currency held by the public and net demand deposits held by commercial banks | | (B). M2 | (II). M3 + Total deposits with Post Office savings organisations | | (C). M3 | (III). M1 + Net time deposits of commercial banks | | (D). M4 | (IV). M1 + Savings deposits with Post Office savings banks | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q124:
22 May Shift 1
Macro > Money & Banking
Easy
Among the following what are the functions of money? (A). Medium of exchange. (B). Unit of account. (C). Unit of purchasing power. (D). Store of value. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q125:
21 May Shift 1
Macro > Money & Banking
Easy
Rajesh is a weaver and is looking for food for his family. He approaches Shyam who is a farmer and offers to exchange clothes in return for wheat. However, Shyam says that his family needs shoes, not clothes. Which shortcoming of the barter system is being highlighted in this case?
Correct Answer
Option 1
Correct Answer
Q126:
21 May Shift 1
Macro > Money & Banking
Easy
If the central bank purchases the government securities from the commercial banks, it is likely to
Correct Answer
Option 1
Correct Answer
Q127:
21 May Shift 1
Macro > Money & Banking
Medium
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:
Correct Answer
Option 4
Correct Answer
Q128:
21 May Shift 1
Macro > Money & Banking
Medium
If the required reserve ratio in an economy is 12.5%, the initial cash deposits of ₹2000 will increase the money supply by ______.
Correct Answer
Option 2
Correct Answer
Q129:
21 May Shift 1
Macro > Money & Banking
Easy
Currency notes and coins are termed as ________.
Correct Answer
Option 4
Correct Answer
Q130:
16 May Shift 1
Macro > Money & Banking
Medium
**DEMONETISATION**
Demonetisation was a initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration.
Further to avoid a complete breakdown and cash crunch, notes government had allowed exchange of Rs 4000 old currency the by new currency per person and per day. Further till 12 December 2016, old currency notes were acceptable as legal tender at petrol pumps, government hospitals and for payment of government dues, like taxes, power bills, etc.
This move has had positive impact also. It improved tax compliance as a large number of people were bought in the tax ambit. The savings of an individual were channelised into the formal financial system. As a result, banks have more resources at their disposal which can be used to provide more loans at lower interest rates. It is a demonstration of State's decision to put a curb on black money, showing that tax evasion will no longer be tolerated. Tax evasion will result in financial penalty and social condemnation. Tax compliance will improve and corruption will decrease. Demonetisation could also help tax administration in another way, by shifting transactions out of the cash economy into the formal payment system. Households and firms have begun to shift from cash to electronic payment technologies.
When was the most recent demonetization undertaken by the government of India?
Correct Answer
Option 1
Correct Answer
Q131:
16 May Shift 1
Macro > Money & Banking
Medium
**DEMONETISATION**
Demonetisation was a initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration.
Further to avoid a complete breakdown and cash crunch, notes government had allowed exchange of Rs 4000 old currency the by new currency per person and per day. Further till 12 December 2016, old currency notes were acceptable as legal tender at petrol pumps, government hospitals and for payment of government dues, like taxes, power bills, etc.
This move has had positive impact also. It improved tax compliance as a large number of people were bought in the tax ambit. The savings of an individual were channelised into the formal financial system. As a result, banks have more resources at their disposal which can be used to provide more loans at lower interest rates. It is a demonstration of State's decision to put a curb on black money, showing that tax evasion will no longer be tolerated. Tax evasion will result in financial penalty and social condemnation. Tax compliance will improve and corruption will decrease. Demonetisation could also help tax administration in another way, by shifting transactions out of the cash economy into the formal payment system. Households and firms have begun to shift from cash to electronic payment technologies.
What was the negative impact of demonetization?
Correct Answer
Option 1
Correct Answer
Q132:
16 May Shift 1
Macro > Money & Banking
Medium
**DEMONETISATION**
Demonetisation was a initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration.
Further to avoid a complete breakdown and cash crunch, notes government had allowed exchange of Rs 4000 old currency the by new currency per person and per day. Further till 12 December 2016, old currency notes were acceptable as legal tender at petrol pumps, government hospitals and for payment of government dues, like taxes, power bills, etc.
This move has had positive impact also. It improved tax compliance as a large number of people were bought in the tax ambit. The savings of an individual were channelised into the formal financial system. As a result, banks have more resources at their disposal which can be used to provide more loans at lower interest rates. It is a demonstration of State's decision to put a curb on black money, showing that tax evasion will no longer be tolerated. Tax evasion will result in financial penalty and social condemnation. Tax compliance will improve and corruption will decrease. Demonetisation could also help tax administration in another way, by shifting transactions out of the cash economy into the formal payment system. Households and firms have begun to shift from cash to electronic payment technologies.
Currency of which denomination were newly launched during demonetization?
Correct Answer
Option 4
Correct Answer
Q133:
16 May Shift 1
Macro > Money & Banking
Medium
**DEMONETISATION**
Demonetisation was a initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration.
Further to avoid a complete breakdown and cash crunch, notes government had allowed exchange of Rs 4000 old currency the by new currency per person and per day. Further till 12 December 2016, old currency notes were acceptable as legal tender at petrol pumps, government hospitals and for payment of government dues, like taxes, power bills, etc.
This move has had positive impact also. It improved tax compliance as a large number of people were bought in the tax ambit. The savings of an individual were channelised into the formal financial system. As a result, banks have more resources at their disposal which can be used to provide more loans at lower interest rates. It is a demonstration of State's decision to put a curb on black money, showing that tax evasion will no longer be tolerated. Tax evasion will result in financial penalty and social condemnation. Tax compliance will improve and corruption will decrease. Demonetisation could also help tax administration in another way, by shifting transactions out of the cash economy into the formal payment system. Households and firms have begun to shift from cash to electronic payment technologies.
What was the immediate impact of demonetization on the economy?
Correct Answer
Option 4
Correct Answer
Q134:
16 May Shift 1
Macro > Money & Banking
Medium
**DEMONETISATION**
Demonetisation was a initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration.
Further to avoid a complete breakdown and cash crunch, notes government had allowed exchange of Rs 4000 old currency the by new currency per person and per day. Further till 12 December 2016, old currency notes were acceptable as legal tender at petrol pumps, government hospitals and for payment of government dues, like taxes, power bills, etc.
This move has had positive impact also. It improved tax compliance as a large number of people were bought in the tax ambit. The savings of an individual were channelised into the formal financial system. As a result, banks have more resources at their disposal which can be used to provide more loans at lower interest rates. It is a demonstration of State's decision to put a curb on black money, showing that tax evasion will no longer be tolerated. Tax evasion will result in financial penalty and social condemnation. Tax compliance will improve and corruption will decrease. Demonetisation could also help tax administration in another way, by shifting transactions out of the cash economy into the formal payment system. Households and firms have begun to shift from cash to electronic payment technologies.
Which of the following is incorrect about the relaxations given by the government to reduce cash crunch immediately after demonetization?
Correct Answer
Option 3
Correct Answer
Q135:
15 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Demand and supply of money
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These measures are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.
If the M1 in the economy is Rs 375 crores, net time deposits of commercial banks is Rs 250 crores and total deposits with post office savings organizations is Rs50 crores, then what will be M4?
Correct Answer
Option 3
Correct Answer
Q136:
15 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Demand and supply of money
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These measures are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.
M3 does not include which of the following?
Correct Answer
Option 2
Correct Answer
Q137:
15 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Demand and supply of money
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These measures are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.
Which of the following is the correct pair of narrow money?
Correct Answer
Option 2
Correct Answer
Q138:
15 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Demand and supply of money
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These measures are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.
Which is the most commonly used measure of money supply?
Correct Answer
Option 3
Correct Answer
Q139:
15 May Shift 1
Macro > Money & Banking
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Demand and supply of money
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These measures are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.
Which of the following is not true about currency notes and coins?
Correct Answer
Option 3
Correct Answer
Q140:
14 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
**Money and Banking**
Exchange of commodities without the mediation of money is called barter exchange. It requires double coincidence of wants. Money facilitates exchanges by acting as a commonly acceptable medium of exchange. In a modern economy, people hold money broadly for two motives – transactive motive and speculative motive. Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc. It is classified as narrow and broad money according to the decreasing order of liquidity. In India, the supply of money is regulated by the Reserve Bank of India (RBI) which acts as the monetary authority of the country. The commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supply by controlling the stock of high powered money, the rate and reserve requirements of the commercial banks.
The classification of money in terms of narrow and broad money is due to .....
Correct Answer
Option 2
Correct Answer
Q141:
14 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
**Money and Banking**
Exchange of commodities without the mediation of money is called barter exchange. It requires double coincidence of wants. Money facilitates exchanges by acting as a commonly acceptable medium of exchange. In a modern economy, people hold money broadly for two motives – transactive motive and speculative motive. Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc. It is classified as narrow and broad money according to the decreasing order of liquidity. In India, the supply of money is regulated by the Reserve Bank of India (RBI) which acts as the monetary authority of the country. The commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supply by controlling the stock of high powered money, the rate and reserve requirements of the commercial banks.
The bank rate and reserve money are the monetary tools of RBI to regulate the money flow with ........... 1. Cooperative banks 2. External banks 3. Central bank 4. Commercial banks
Correct Answer
Option 4
Correct Answer
Q142:
14 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
**Money and Banking**
Exchange of commodities without the mediation of money is called barter exchange. It requires double coincidence of wants. Money facilitates exchanges by acting as a commonly acceptable medium of exchange. In a modern economy, people hold money broadly for two motives – transactive motive and speculative motive. Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc. It is classified as narrow and broad money according to the decreasing order of liquidity. In India, the supply of money is regulated by the Reserve Bank of India (RBI) which acts as the monetary authority of the country. The commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supply by controlling the stock of high powered money, the rate and reserve requirements of the commercial banks.
Reserve Bank of India (RBI) is also known as by which other name.
Correct Answer
Option 1
Correct Answer
Q143:
14 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
**Money and Banking**
Exchange of commodities without the mediation of money is called barter exchange. It requires double coincidence of wants. Money facilitates exchanges by acting as a commonly acceptable medium of exchange. In a modern economy, people hold money broadly for two motives – transactive motive and speculative motive. Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc. It is classified as narrow and broad money according to the decreasing order of liquidity. In India, the supply of money is regulated by the Reserve Bank of India (RBI) which acts as the monetary authority of the country. The commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supply by controlling the stock of high powered money, the rate and reserve requirements of the commercial banks.
What is the principal motive for holding money?
Correct Answer
Option 1
Correct Answer
Q144:
14 May Shift 1
Macro > Money & Banking
Medium
Comprehension:
**Money and Banking**
Exchange of commodities without the mediation of money is called barter exchange. It requires double coincidence of wants. Money facilitates exchanges by acting as a commonly acceptable medium of exchange. In a modern economy, people hold money broadly for two motives – transactive motive and speculative motive. Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc. It is classified as narrow and broad money according to the decreasing order of liquidity. In India, the supply of money is regulated by the Reserve Bank of India (RBI) which acts as the monetary authority of the country. The commercial banks of the country and RBI are responsible for changes in the supply of money in the economy. RBI regulates money supply by controlling the stock of high powered money, the rate and reserve requirements of the commercial banks.
Which system requires double coincidence of wants?
Correct Answer
Option 3
Correct Answer
Q145:
13 May Shift 2
Macro > Money & Banking
Medium
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:
Correct Answer
Option 4
Correct Answer
Q146:
13 May Shift 2
Macro > Money & Banking
Easy
When the Reserve Bank of India buys government bonds from the market, how does that affect money supply in the economy?
Correct Answer
Option 1
Correct Answer
Q147:
13 May Shift 2
Macro > Money & Banking
Medium
How much total credit creation can bank creates with Cash Reserve Rato of 20% when bank's reserves are Rs. 1000.
Correct Answer
Option 1
Correct Answer
Q148:
13 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Net Worth | (I) Currency + Deposits | | (B) M₁ | (II) Reserves + Loans | | (C) Assets | (III) 1/ Cash Reserve Ratio | | (D) Money Multiplier. | (IV) Assets – Liabilities | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q149:
13 May Shift 2
Macro > Money & Banking
Hard
Arrange the following central bank reserve rates in their descending rates. (A) Cash Reserve Ratio (B) Repo Rate. (C) Reverse Repo Rate. (D) Statutory Liquidity Ratio. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q150:
13 May Shift 1
Macro > Money & Banking
Easy
Currency notes and coins are called:
Correct Answer
Option 1
Correct Answer
Q151:
13 May Shift 1
Macro > Money & Banking
Hard
Arrange the following conditions from most to least liquid form: (A) Currency + Demand Deposit+Savings deposits with Post Office savings banks. (B) Currency + Demand Deposit + Net time deposits of commercial banks+ Total deposits with Post Office savings organisations. (C) Currency + Demand Deposit. (D) Currency + Demand Deposit + Net time deposits of commercial banks. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q152:
13 May Shift 1
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Cash Reserve Ratio (CRR) | (I) Central Bank of the Country | | (B) Statutory Liquidity Ratio (SLR). | (II) The interest rate at which the money lent by Central Bank | | (C) Lender of last resort. | (III) Percentage of deposits which must kept as cash reserves with the Central bank. | | (D) Repo Rate | (IV) Reserves in liquid form in the short term | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q153:
13 May Shift 1
Macro > Money & Banking
Medium
Among the following, which are the functions of money? (A) Medium of exchange. (B) Unit of account. (C) Bartering (D) Store of value Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q154:
13 May Shift 1
Macro > Money & Banking
Easy
Money deposited in the banks are considered ______________ of the banks.
Correct Answer
Option 3
Correct Answer
Q155:
CUET Economics 2024 Slot 1
Macro > Money & Banking
Hard
European Monetary Union was created in
Correct Answer
Option 3
Correct Answer
Q156:
CUET Economics 2024 Slot 1
Macro > Money & Banking
Medium
(A) Quantitative tools control the extent of money supply by changing the CRR.
(B) There are two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease the money supply.
(D) Selling of a bond by RBI leads to reduction in quantity of reserves.
(E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial
banks.
Which of the following statements are true?
Correct Answer
Option 4
Correct Answer
Q157:
CUET Economics 2024 Slot 1
Macro > Money & Banking
Medium
<table class="question-table"> <thead> <tr> <th colspan="2">Match List-I with List-II :</th> </tr> </thead> <tbody> <tr> <th>List-I</th> <th>List-II</th> </tr> <tr> <td>(A) Bank Rate</td> <td>(I) Securities are pledged in order to repurchase</td> </tr> <tr> <td>(B) Marginal Standing Facility</td> <td>(II) Minimum rate at which funds are provided for long term</td> </tr> <tr> <td>(C) Repo Rate</td> <td>(III) Also known as Penal Interest Rate</td> </tr> <tr> <td>(D) Reverse Repo Rate</td> <td>(IV) Central Bank borrows funds from commercial banks</td> </tr> </tbody> </table>
Match List-I with List-II :
Correct Answer
Option 2
Correct Answer
Q158:
CUET Economics 2024 Slot 1
Macro > Money & Banking
Easy
Which of the following is not a function of Central Bank ?
Correct Answer
Option 3
Correct Answer
Q159:
20 June Shift 1
Macro > Money & Banking
Medium
When Central Bank buys securities, this agreement of purchase also has specification about date and price of the resale, it is called:
Correct Answer
Option 2
Correct Answer
Q160:
20 June Shift 1
Macro > Money & Banking
Medium
When Central Bank buys securities without any promise to sell them later, it is known as?
Correct Answer
Option 2
Correct Answer
Q161:
20 June Shift 1
Macro > Money & Banking
Easy
Given a Cash Reserve Ratio (CRR) being 20%, the value of the money multiplier will be_______.
Correct Answer
Option 4
Correct Answer
Q162:
20 June Shift 1
Macro > Money & Banking
Medium
Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation. A. Hence the money supply in the economy decreases B. As a result, loans taken by commercial banks become more expensive C. The central bank increases the bank rate D. This reduces the reserves held by the commercial banks Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q163:
20 June Shift 1
Macro > Money & Banking
Medium
A fall in Bank rate can increase the ________ .
Correct Answer
Option 1
Correct Answer
Q164:
20 June Shift 1
Macro > Money & Banking
Medium
Which of the following is not true about a commercial Bank?
Correct Answer
Option 3
Correct Answer
Q165:
11 June Shift 3
Macro > Money & Banking
Easy
A fall in the bank rate __________ the money supply.
Correct Answer
Option 2
Correct Answer
Q166:
11 June Shift 3
Macro > Money & Banking
Easy
Calculate the total deposits made by commercial banks when the primary deposit is Rs. 20 Crores and cash reserve ratio is 20%. Choose the correct option.
Correct Answer
Option 4
Correct Answer
Q167:
1 June Shift 1
Macro > Money & Banking
Medium
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 :
Correct Answer
Option 4
Correct Answer
Q168:
1 June Shift 1
Macro > Money & Banking
Easy
This bank does not accept deposits from the public and does not lend to general public :
Correct Answer
Option 4
Correct Answer
Q169:
1 June Shift 1
Macro > Money & Banking
Easy
Which among the following will lead to a reduction in the money supply of the economy ?
Correct Answer
Option 1
Correct Answer
Q170:
30 May Shift 1
Macro > Money & Banking
Medium
When in the Economic, Bank rate decrease, Arrange the following statements relating to change in bank rate in the sequencing order : (A) Loans taken by commercial bank become cheaper (B) Increases money supply (C) Bank rate is decreased by RBI (D) Reserves held by commercial banks increases Choose the correct answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q171:
30 May Shift 1
Macro > Money & Banking
Easy
The ratio of money held by the public in currency to that held as deposits in commercial banks is called .
Correct Answer
Option 1
Correct Answer
Q172:
30 May Shift 1
Macro > Money & Banking
Easy
"The ratio of total money supply to the stock of high powered money in an economy" is referred to :
Correct Answer
Option 1
Correct Answer
Q173:
30 May Shift 1
Macro > Money & Banking
Easy
If Cash Reserve Ratio is 20%, what will be the value of money multiplier ?
Correct Answer
Option 1
Correct Answer
Q174:
29 May Shift 2
Macro > Money & Banking
Medium
Chronologically arrange the following events. A. Announcement of Demonetisation B. Circulation of Fake Currency C. Rs 500 and 1000 Notes lost legal tender D. Impact on Economic Activities E. New Rs 2000 Currency Note in the circulation Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q175:
29 May Shift 2
Macro > Money & Banking
Easy
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC. Which function of central Bank is refered to in the above paragraph.
Correct Answer
Option 2
Correct Answer
Q176:
29 May Shift 2
Macro > Money & Banking
Medium
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.
As a bankers' bank, what is the role played by RBI? A. Custodian of cash reserves B. Maintain Foreign Exchange Reserves C. Currency Issue D. Lender of last resort E. Clearing house Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q177:
29 May Shift 2
Macro > Money & Banking
Easy
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.
How does RBI act as a supervisor to bank?
Correct Answer
Option 4
Correct Answer
Q178:
29 May Shift 2
Macro > Money & Banking
Easy
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.
If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?
Correct Answer
Option 2
Correct Answer
Q179:
29 May Shift 2
Macro > Money & Banking
Medium
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.
Which of the following is correct statement?
Correct Answer
Option 4
Correct Answer
Q180:
28 May Shift 2
Macro > Money & Banking
Easy
Repo-Rate is the rate at which RBI lends money to commercial Banks for __________.
Correct Answer
Option 2
Correct Answer
Q181:
28 May Shift 2
Macro > Money & Banking
Easy
The RBI can influence money supply by changing __________ at which it gives loan to the commercial Banks.
Correct Answer
Option 4
Correct Answer
Q182:
28 May Shift 2
Macro > Money & Banking
Medium
Arrange the following statements relating to open market operations in the correct sequence. (A) There by resulting in an increase in money supply (B) Central bank pays for it by giving a cheque (C) Central bank buys a government bond in the open market (D) This increases the total amount of reserves in the economy Choose the correct answer from the options given below :
Correct Answer
Option 4
Correct Answer
Q183:
28 May Shift 2
Macro > Money & Banking
Easy
RBI can influence money supply by changing the Bank rate. An increase in Bank rate can be termed as :
Correct Answer
Option 1
Correct Answer
Q184:
28 May Shift 2
Macro > Money & Banking
Easy
When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :
Correct Answer
Option 3
Correct Answer
Q185:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Medium
In a situation of Excess Demand. Choose the correct option. (A) Cash reserve ratio should decrease (B) Bank rate should increase (C) Statutory Liquidity Ratio should increase (D) Statutory Liquidity Ratio should decrease Choose the correct answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q186:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Easy
In India currency notes are issued by the Reserve Bank of India (RBI) which is the monetary authority of India. However, coins are issued by the government of India. Apart from currency notes and coins, balance in savings or current account deposits held by the public in commercial bank is also considered money. Since cheques drawn on these accounts are used to settle transaction such deposits are called demand deposit. They are payable by the bank on demand. Other deposits, eg. fixed deposits, have a fixed period of maturity and are therefore referred to as time deposit.
In India currency notes are issued by _______.
Correct Answer
Option 3
Correct Answer
Q187:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Easy
In India currency notes are issued by the Reserve Bank of India (RBI) which is the monetary authority of India. However, coins are issued by the government of India. Apart from currency notes and coins, balance in savings or current account deposits held by the public in commercial bank is also considered money. Since cheques drawn on these accounts are used to settle transaction such deposits are called demand deposit. They are payable by the bank on demand. Other deposits, eg. fixed deposits, have a fixed period of maturity and are therefore referred to as time deposit.
In India coins are issued by _______.
Correct Answer
Option 4
Correct Answer
Q188:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Easy
In India currency notes are issued by the Reserve Bank of India (RBI) which is the monetary authority of India. However, coins are issued by the government of India. Apart from currency notes and coins, balance in savings or current account deposits held by the public in commercial bank is also considered money. Since cheques drawn on these accounts are used to settle transaction such deposits are called demand deposit. They are payable by the bank on demand. Other deposits, eg. fixed deposits, have a fixed period of maturity and are therefore referred to as time deposit.
_______ are deposits which have a fixed period of maturity.
Correct Answer
Option 2
Correct Answer
Q189:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Easy
In India currency notes are issued by the Reserve Bank of India (RBI) which is the monetary authority of India. However, coins are issued by the government of India. Apart from currency notes and coins, balance in savings or current account deposits held by the public in commercial bank is also considered money. Since cheques drawn on these accounts are used to settle transaction such deposits are called demand deposit. They are payable by the bank on demand. Other deposits, eg. fixed deposits, have a fixed period of maturity and are therefore referred to as time deposit.
Who among the following is responsible for controlling money supply in the economy ?
Correct Answer
Option 4
Correct Answer
Q190:
CUET Economics 2022 Slot 5
Macro > Money & Banking
Easy
In India currency notes are issued by the Reserve Bank of India (RBI) which is the monetary authority of India. However, coins are issued by the government of India. Apart from currency notes and coins, balance in savings or current account deposits held by the public in commercial bank is also considered money. Since cheques drawn on these accounts are used to settle transaction such deposits are called demand deposit. They are payable by the bank on demand. Other deposits, eg. fixed deposits, have a fixed period of maturity and are therefore referred to as time deposit.
Deposits which are payable on demand are called _______.
Correct Answer
Option 3
Correct Answer
Q191:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Easy
Identify the correct statements regarding money supply (A) Money supply is a stock concept. (B) Money supply is a flow concept. (C) Money supply is the currency (cash and coins) with the public and demand deposit in banks. (D) Money supply is the currency held with banks. (E) Money supply is the concept of real flow. Choose the correct answer from the options given below :
Correct Answer
Option 1
Correct Answer
Q192:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Easy
Identify the quantitative tools used by RBI to control money supply. (A) Moral Suasion (B) Bank Rate (C) Cash Reserve Ratio (D) Open Market Operations (E) Margin requirement Choose the correct answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q193:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Easy
If the reserve ratio is 10% and the initial deposit with the commercial banks are Rs. 450 cr, the total money creation by the banking system will be :
Correct Answer
Option 4
Correct Answer
Q194:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Medium
Match List - I with List - II. | List - I (Financial Terms) | List - II (Examples) | | --- | --- | | (A) Monetary Base | (I) Loans extended by banks | | (B) Assets | (II) Reserve Bank of India | | (C) Liabilities | (III) Currency | | (D) Credit control | (IV) Deposits accepted by the banks | Choose the correct answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q195:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Easy
Which of the following is a function of RBI ?
Correct Answer
Option 3
Correct Answer
Q196:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Easy
Which of the following is not a function of the Central Bank ?
Correct Answer
Option 4
Correct Answer
Q197:
CUET Economics 2022 Slot 4
Macro > Money & Banking
Medium
Which among the following is not a part of Qualitative measure of Monetary Policy of RBI ?
Correct Answer
Option 3
Correct Answer
Q198:
CUET Economics 2022 Slot 3
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).
Correct Answer
Option 3
Correct Answer
Q199:
CUET Economics 2022 Slot 3
Macro > Money & Banking
Medium
Identify the incorrect statement. (A) Money is what money does (B) There are many assets which carry functions of money (C) In modern sense, money creates instability (D) The first and foremost role of money is that it acts as medium of exchange (E) Money acts only as convenient unit of account Choose the **correct** answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q200:
CUET Economics 2022 Slot 3
Macro > Money & Banking
Easy
Buying and selling of government securities by the Reserve Bank of India to the public is called :
Correct Answer
Option 3
Correct Answer
Q201:
CUET Economics 2022 Slot 3
Macro > Money & Banking
Medium
Match **List - I** with **List - II**. | List - I (Banking) | List - II (Function) | |---|---| | (A) Commercial Bank | (I) Long term lending rate by RBI | | (B) Reserve Bank of India | (II) Short term lending rate by RBI | | (C) Bank Rate | (III) Credit creation | | (D) Repo Rate | (IV) Lender of last resort | Choose the **correct** answer from the options given below :
Correct Answer
Option 2
Correct Answer
Q202:
CUET Economics 2022 Slot 3
Macro > Money & Banking
Medium
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 ?
Correct Answer
Option 2
Correct Answer
Q203:
CUET Economics 2022 Slot 3
Macro > Money & Banking
Medium
High powered money comprises of :
Correct Answer
Option 1
Correct Answer
Q204:
CUET Economics 2022 Slot 2
Macro > Money & Banking
Medium
Identify the correct statements from the following: A. Currency is issued by the nation's Central Bank B. To address the budget deficit, Central Bank sends money to the government C. The economy's foreign exchange reserves are preserved by Central Bank D. Central Bank does not control money supply and credit through monetary policy E. Central Bank gives loans to the commercial Banks for short term Choose the correct answer from the options given below :
Correct Answer
Option 4
Correct Answer
Q205:
CUET Economics 2022 Slot 2
Macro > Money & Banking
Easy
Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:
Correct Answer
Option 3
Correct Answer
Q206:
CUET Economics 2022 Slot 2
Macro > Money & Banking
Easy
In a time of deflation, the Central Bank should:
Correct Answer
Option 1
Correct Answer
Q207:
CUET Economics 2022 Slot 1
Macro > Money & Banking
Medium
What will be the amount of initial reserves if Cash Reserve Ratio (CRR) is 20 % and total credit creation is Rs 500?
Correct Answer
Option 4
Correct Answer
Q208:
CUET Economics 2022 Slot 1
Macro > Money & Banking
Medium
The currency issued by the Reserve Bank of India is called. A. High powered money B. Reserve money C. Bank money D. Monetary base E. Fiscal base Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q209:
CUET Economics 2022 Slot 1
Macro > Money & Banking
Medium
Identify which of the following measures taken by RBI will increase the money supply. A. Increase in Cash Reserve Ratio B. Decrease in Cash Reserve Ratio C. Selling of a government bond D. Buying of a government bond E. Decrease in Bank Rate Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer