CUET Economics: MacroMoney & Banking. Free, no login required.

Match List-I with List-II

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Given a cash reserve ratio of 50 per cent and reserves of Rs 100, what is the money multiplier?

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.

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The banks are required to keep some reserves in liquid form with the central bank. What are they called?

When is Demonetisation, a new initiative was taken by the Government of India?

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.

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

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

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

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)

When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?

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.

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Central Bank is a very important institution in a modern economy. Almost every country has one central bank. India got its central bank in ......

Match List-I with List-II

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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?

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.

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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.

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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?

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.............

Which of the following is a quantitative tool of credit control by the reserve bank of India?

Match List-I with List-II

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The process of Buying and selling of bonds issued by the Government by the central bank is called.

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:

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 __ __

Given a cash reserve ratio of 20 percent, reserves of Rs 100 create deposits of ___________?