XII Economics - Monthly test july

Money which is issued by the order of government is known as

• Fiat money.

• Fiduciary money.

• Full bodied money

• Credit money.

Supply of money is a

• Flow concept .

• stock concept.

• Real flow

• All of the above.

Who supplies money In India?

• The RBI

• The commercial Banks

• The Government.

• All of the above

Reverse repo rate aims to

• increase money supply in the economy

• reduce excess money supply in the economy

• RBI provide loans to commercial bank at l

• all of the above.

Margin requirement is a monetary tool of RBI which is difference between

• repo rate and bank rate.

• CRR & SLR

• amount of deposit and value of loans.

• amount of loans and value of security.

What is the Cash Reserve Ratio (CRR)?

• the fraction of the deposits that commercial banks lend to the customers

• the fraction of the deposits that RBI must keep with commercial banks

• the fraction of the deposits that commercial banks must keep with RBI

• none of the above

Which bank is called lender of last resort?

• Commercial bank

• Agricultural bank

• Industrial bank

• Central bank

Which of the following is issued by RBI?

• Currency notes

• Coins

• Both

• None

Which out of the following is the correct formula for calculating the Narrow money M1?

• Currency with public + Demand deposits with the Banking system (current account, saving account) + Other deposits with RBI

• Currency in Circulation + Bankers’ Deposits with RBI + Other deposits with RBI

• M1 + Time deposits with the banking system

• M1 + Savings deposits of post office savings banks

RBI was established in

• 1930

• 1935

• 1949

• 1956