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Primary Deposits + Secondary Deposits = of the Commercial Banks.
 

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Important Questions on Money and Banking

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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.

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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?
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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 statement is false?
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Only _____ (gross/net) demand deposits are part of money supply.
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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Define 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
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
What are the alternative definitions of money supply in India?
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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
Currency  means:
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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

Money supply refers to :

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
 What is High powered money? 
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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.
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

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
 What is a 'legal tender'? What is 'fiat money'? 
MEDIUM
Economics>Macroeconomics>Money and Banking>Demand and Supply of Money
Which of the following statements is correct about Money Supply?