Determinants of Money Supply

Q.

In India, operative cash reserves are known as:

1. CRR

2. SLR

3. Vault cash

4. None of these

Q.

Write true or false against each of the following statements: $16:24::20:30$

1. True
2. False

Q.

Currency held by the public is:

1. An asset for the RBI

2. A liability for the RBI

3. An asset for the public

4. A liability for the public

Q.

What are the features of demonetization?

Q.

The percentage of demand deposits which the commercial banks are legally required to maintain as their liquid assets is called:

1. Reverse repo rate

2. CRR

3. Repo rate

4. SLR

Q.

Write true or false against each of the following statements: $12:18::28:12$

1. True
2. False

Q. Distinguish between.
Quantitative Credit Control Measures and Qualitative Credit Control Measures.

Q.

Write true or false against each of the following statements: $21:6::35:10$

1. True
2. False

Q.

SLR requires the commercial banks to build their liquid assets by way of:

1. Reserves of gold

2. Reserves of unencumbered securities

3. All of these

4. Reserves of cash

Q. What is legal Reserve Ratio? Explain its components.

Q. Explain the 'bankers' bank" function of the central bank.

Q.

What is SLR?

Q. What is meant by 'Cash Reserve Ratio'?

Q. With the help of cash reserve deposited by commercial banks with Central bank commercial banks can _______________.

1. Increase their credit in the market
2. A cash reserve ratio can be formed
3. Both a & b
4. None of the above

Q. As we all know, Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. What is this portion is called?

1. Reverse Repo
2. Statutory Liquidity Ratio
3. Bank Deposit
4. Cash Reserve Ratio

Q. Distinguish between Statutory Liquidity Ratio and Cash Reserve Ratio.

Q.

CRR Refers To ______.

1. Cash Reserve Ratio

2. Current Reserve Ratio

3. Currency Reserve Ratio

4. Capital Redemption Reserve .

Q. People deposit their money in bank because _____.

1. their money is safe in banks
2. it's a status symbol
3. they get interest in return
4. both A and C

Q.

If an individual holds Rs. 100 as currency and her currency deposit ratio is 0.75, calculate the total amount of money and the deposits she holds in her bank account respectively.

1. $\frac{700}{3},\frac{400}{3}$

2. $\frac{400}{3},\frac{700}{3}$

3. $300,200$

4. $200,100$

Q.

If currency held is 300 and deposits in the bank are 400, what is the currency deposit ratio?

1. $\frac{3}{4}$

2. $\frac{7}{3}$

3. $1$

4. $\frac{4}{3}$

Q. What is CRR?

1. The rate at which RBI borrows money from the commercial banks
2. It's a rate at which RBI decides the sale and purchase of capital assets with foreign banks
3. The rate at which commercial banks borrow money from the Reserve Bank of India
4. It is a proportion of cash, the commercial banks have to deposit with the RBI

Q. Other name for legal reserve requirement is ________________.

1. Cash reserve ratio
2. Statutory liquidity ratio
3. Variable reserve ratio
4. Bank rate

Q. Explain the effect of inflation on fixed income groups and borrowers.

Q. State with reasons whether you agree or disagree with the following statements.
Providing safe deposit vault facility is the only general function of commercial banks.

Q. Explain the "varying reserve requirements" method of credit control by the central bank.

Q. Currency held by the public is an asset for the public and a liability for the RBI.

1. False
2. True

Q. Define or Explain the following concepts.
Cash Reserve Ratio

Q. State with reasons whether you agree or disagree with the following statements.
The Central Bank works as Banker's bank or RBI acts as a Banker's Bank.

Q. What do you mean by 'credit'?

1. Agreement in which the borrower lends money, goods and services in return for the promise of future payment
2. Agreement in which the lender lends money without the promise of future payment
3. Agreement in which the moneylenders lends money to poor borrowers
4. Agreement in which only banks lends money to borrowers

Q. Distinguish between the following:
Cash Reserve Ratio and Statutory Liquidity Ratio