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WorksheetsMacro Economics Money and Banking
Total questions: 45
Worksheet time: 23mins
Rule stating that a percentage of every deposit be set aside as legal reserves
monetary policy
discount rate
reserve requirement
margin requirements
What type of money would this be?
Commodity
Fiat
Representitive
Gold
Which of the following is NOT a function of money?
Unit of Account
medium of exchange
liquidity value
store of value
The term "legal tender" serves which basic function?
medium of exchange
standard of value
store of value
divisibility
The division of money into M1, M2, and M3 is based on
assets
supply
amount in circulation
liquidity
If the reserve requirement is 10% and I put in $100, what is the amount a bank can loan out?
$80
$90
$72
.9
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
Which bank is called lender of last resort?
Commercial bank
Agricultural bank
Central bank
Which bank enjoys monopoly power of Note issue?
NABARD
Commercial Bank
Central Bank
What is the name of Central Bank in India?
SBI
RBI
PNB
What is the ratio of deposits which commercial banks are required to keep with themselves called?
CRR
SLR
both
The rate at which central bank lends to commercial banks is called?
SLR
CRR
bank rate
Buying and selling of government securities by the central bank from/to banks is called?
open market operations
margin
banking
Which of the following is a commonly accepted definition of money?
Any good which is commonly uiesd as a store of value
Any good which is exchanged foe gold at a fixed rate.
Any good which is acceptable to a bank
Any good which is commonly accepted as medium of exchange
Which of the following is a commonly accepted definition of money?
Any good which is commonly uiesd as a store of value
Any good which is exchanged foe gold at a fixed rate.
Any good which is acceptable to a bank
Any good which is commonly accepted as medium of exchange
Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-
full bodied money
fait money
fiduciary money
credit money
Money thai is issued by the authority of the government is called-
full bodied money
fait money
fuduciary money
all the above
commercial bank creat credit money by way of --
Time deposit
Treasury Bill
Bill of Exchange
demand deposit
Maximum credit that commercial bank can legally creat depends on their
Gold Reserve
legal reserve ratio( LRR)
CRR
SLR
Which of the following is not a tools of credit control?
CRR
SLR
Moral suasions
Managed floting
Inflation is to be combated the RBI-
Raise in CRR and lower SLR
Lower CRR and raise SLR
Raise both CRR and SLR
none of these
Open market operation as an instrument of credit control are performed by
Central bank of country
the commercial bank pof country
Both a and b
none of these
Money multiplier is
1/ CRR
1/ SLR
1/ LRR
NONE OF THESE
Who issue 1 rupee note
RBI
COMMERCIAL BANK
MINISTRY OF FINANCE
ALL THE ABOVE
Which is not the function if central bank
Banker to the government
Controller of the money supply
Bankers bank
Overdraft facility
What is the other name of money multiplier
Deposit multiplier
Credit multiplier
Cash reserve ratio
None of these
In order to reduce credit in the country RBI follow
Buy the securities in the open market
Sell the security in the open market
Reduce crr
Reduce repo rate
Which of the following is not instrument if monetary policy
Bank rate
Open market operation
Selective credit control
Government spending
ComnercialBank create credit
Out of nothing
On the basis of securities
On the basis of their assets
On the basis of deposits
Which bank operate in public interest without profit motive
SBI
RBI
UBI
PNB
What is the value of multiplier if LR is 10%
20
10
5
50
Which of the following condition needed for financial institution become a bank
Accepting deposit
Advancing loans
Both
None of these
Which is qualitative credit control policy
CRR
SLR
OMO
Moral suasion
If CRR is 5% SLR 20 % , money multiplier is
4
5
20
None of these
Which of following is not included in M1
Inter bank deposits
Currency n coins with public
Other deposits with RBI
Demand deposits with banks
Money supply includes
All deposits in banks
Only time deposits
Only demand deposits
Currency with bank
Supply of money refers to quantity of money
As on 31st march
As on any point of time
During fiscal year
During period of time
It allows us to trade
Means of exchange
Unit of Account
Store of Value
Legal Tender
“Ariana Rose purchases a new computer from the MYT Computer and paid by credit card.” Based on the statement, choose the appropriate money function.
A store of value.
A measure of value.
A medium of exchange .
A standard of deferred payment tools.
Money that can be directly used for transaction is ___________________.
near money.
broad money.
M1.
M2.
Accepting deposits from individuals or firms and providing loans to the public are the basic function of ________________.
Financial institution.
Commercial banks.
Insurance company.
Bank Negara Malaysia.
