Money and Banking

Who can issue one rupee note in India

• RBI Governor

• Government

• Finance Secretary

• Finance Ministry

What do you mean by credit creation by commercial banks

• process of creation of foreign exchange

• process of loan creation

• process of total withdrawal creation

• process of total deposit creation

Money is something that is

• Accepted by banks

• Locally accepted

• Regionally accepted

• Universally accepted

Choose the incorrect statement:

• All coins (50p, Rs1, Rs5) are token coins

• All currency notes issued by RBI are promissory notes

• Credit money the value of of monetary purposes is less than its value for non monetary purposes

• Demand deposits are claims of creditors against banks

Currency in India is issued on the basis of

• Legal reserve ratio

• Minimum reserve system

• Cash reserve ratio

Which is not related to banking in India

• Currency issued by RBI is inconvertible

• All notes except one rupee is issued by RBI

• Legal tender money is also called Fiat money because it serves as money by the order of RBI

• Putting all currency notes and coins into circulation, is done by RBI

Broad definition of money includes currency, demand deposits, saving deposits and time deposits

• Can't say

• False

• True

The maximum limit to accept payment in coins

• Rs 500

• Rs 1000

• Rs 250

• Rs 10,000

High powered money includes

• currency and demand deposits

• demand deposits and saving deposits

• currency held by the public and the cash reserves with banks

• None of these

The component not included in money supply

• Currency with private individuals

• Currency with business firms

• Stock of gold with RBI

• All of these