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Demand deposits are equal to cash deposits of the people with the Commercial Banks.

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Important Questions on Money and Banking

EASY
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Money supply refers to :

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Money supply doesnot include money held by government and banking system.
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
 What is High powered money? 
EASY
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Which is the main source of money supply in an economy?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Money supply includes demand deposits of the people with commercial banks.
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Money supply refers to total volume of money held by _____ at a particular point of time in an economy.
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

State the two components of money supply. OR

State the components of money supply. OR

State the two components of M1 measure of money supply.

HARD
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Explain the functions of a commercial bank.
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
M1 includes net demand deposits and not gross demand deposits.
HARD
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
 Do you consider a commercial bank 'Creator of money' in the economy?
MEDIUM
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Which of the following statements is correct about Money Supply?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Which of the following statement is false?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
 What is a 'legal tender'? What is 'fiat money'? 
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Supply of money refers to quantity of money:
HARD
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Which of the following is correct in reference to Reserve Bank of India?

 

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Only _____ (gross/net) demand deposits are part of money supply.
MEDIUM
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
 What role of RBI is known as 'Lender of last Resort'? 
HARD
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
What is transaction demand for money? How is it related to the value of transactions over a specified period of time?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
What are the alternative definitions of money supply in India?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Currency  means: