Cluster · Banking and Monetary Economics

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Clusters / #1468
tight score 0.36

Money Banking and Monetary Policy
Questions
370
Questions in this cluster
368 total
Question Category Subtype Difficulty

When money does NOT have intrinsic value, this type of money is called____.

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bihar_police intermediate

Which measure(s) is the Reserve Bank most likely to take to combat inflation in the economy?

A) Increase repo rate

B) Increase money supply

C) Decrease cash reserve ratio

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bihar_police intermediate

Which of the following refers to the purchase and sale of government securities?

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bihar_police intermediate

In the situation of a liquidity trap, what is the value of elasticity for speculative demand for money?

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bihar_police intermediate

Read the given statements and select the correct option regarding ‘High Powered Money’.
(i) High Powered Money consists of currency and cash reserves with the bank.
(ii) High Powered Money includes demand deposits of the banks.

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bihar_police intermediate

Which of the following is the most commonly used measure of money supply and is also known as aggregate monetary resources?

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bihar_police intermediate

What are securities sold by the Central Bank with a specified repurchase date and price called?

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bihar_police intermediate

Which of the following terms refers to the running down or payment of a loan in installments?

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bihar_police intermediate

The process of profiting from price or yield differences between different markets is called __________.

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bihar_police intermediate

Intervention by the monetary authority of a country in the money market to keep money supply stable against exogenous or sometimes external shocks is called _____.

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bihar_police intermediate

The rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers is called the ______. 

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bihar_police intermediate

The interest rate at which the Reserve Bank absorbs liquidity from banks against the collateral of eligible government securities under the LAF is called the ______.

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bihar_police intermediate

......... refers to a deposit into a bank account or a financial institution with no specified maturity date.

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bihar_police intermediate

How does a Central Bank carry out the process of debt monetization?

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bihar_police intermediate

The market in which security documents are traded directly between the raiser of capital and the buyer is known as _______.

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bihar_police intermediate

________ is the currency in the hands of the public plus commercial bank reserves, also called ‘high powered money’.

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bihar_police intermediate

Merchant discount rate refers to ______

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bihar_police intermediate

What do you understand by 'barter system'?

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bihar_police intermediate

Which of the following has universal acceptability in discharge of debt & payment obligations?

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bihar_police intermediate

Which of the following is considered to be the most liquid asset?

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bihar_police intermediate

Which of the following terms refers to the running down or payment of a loan in installments?

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bihar_police intermediate

......... refers to a deposit into a bank account or a financial institution with no specified maturity date.

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bihar_police intermediate

What does the 'Cash Reserve Ratio (CRR)' mean?

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bihar_police intermediate

Which one of the following is a monetary principle stating that "bad money drives out good"?

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bihar_police intermediate

Which among the following Laws states that 'Bad money drives good money out of circulation'?

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bihar_police intermediate

What happens to Inflation in case the interest rate increases?

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bihar_police intermediate

Which of the following statements is/are correct about speculative demand for money?

i. It is Perfectly interest elastic

ii. It is Relatively interest elastic

iii. It is Perfectly interest inelastic

iv. It is Relatively interest inelastic

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bihar_police intermediate

When the person receives a loan from the bank then the person is referred to as ______.

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rajasthan intermediate

Which of the following is not a barrier to trade in the barter system?

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rajasthan intermediate

Bank rate is the rate at which:

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rajasthan intermediate

If the inflation in an economy is rising steadily, the Central Bank might ______.

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rajasthan intermediate

Which measure(s) is the Reserve Bank most likely to take to combat inflation in the economy?

A) Increase repo rate

B) Increase money supply

C) Decrease cash reserve ratio

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up_police intermediate

How does a Central Bank carry out the process of debt monetization?

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up_police intermediate

The market in which security documents are traded directly between the raiser of capital and the buyer is known as _______.

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up_police intermediate

What do you understand by 'barter system'?

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up_police intermediate

What are securities sold by the Central Bank with a specified repurchase date and price called?

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up_police intermediate

What do you understand by 'barter system'?

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up_police intermediate

In the situation of a liquidity trap, what is the value of elasticity for speculative demand for money?

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up_police intermediate

The general target of the monetary policy is to ensure __________.

(A) Price stability in the economy

(B) greater tax collection for the government

(C) employment generation in the rural areas

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up_police intermediate

Which of the following exchange rates is determined by the market forces of demand and supply?

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up_police intermediate

If inflation in an economy is steadily increasing, the Central Bank may opt to ________.

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rpf intermediate

A deposit made into a bank account or financial institution that lacks a designated maturity date is referred to as ____________.

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rpf intermediate

What do banks utilize a major portion of the deposits for?

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rpf intermediate

In which Banking system, Banks accept deposits and provide loans to the customer while holding in reserve an amount equal to only a fraction of the bank's deposit liabilities?

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rpf intermediate

The primary purpose of the Reserve Bank of India monetary policy is to maintain:

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rpf intermediate

_______ type of money is also termed as legal tender as notified by the Central government and central bank. 

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rpf intermediate

What is the full form of "SLR" in banking terms?

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rpf intermediate

Which of the following measure is correct about controlling inflation?

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rpf intermediate

Which of the following statements is true about a Recurring Deposit (RD) account?

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rpf intermediate

What types of assets can be found on the 'Baanknet' portal?

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rpf intermediate
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