HARD
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Value of Money Multiplier, (increases/decreases/remains unchanged) with an increase in Cash Reserve Ratio.

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Important Questions on Money and Banking

EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
 What is meant by a central bank? Why is it known as apex body?
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

Credit Control means:

EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

This function of Central Bank involves buying and selling of government securities from or to the public and commercial banks.

HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
What will be the effect of a rise in the bank rate on money supply?
HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
The central bank can increase availability of credit by:
HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
Purchase of securities in the open market by the commercial banks reduces their credit crediting power.
HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

What are open market operations? What is their effect on availability of credit? 
OR

Explain the open market operations method of credit control used by a Central Bank .

OR

How does central bank control credit creation by commercial banks through open market operations?
OR

Explain how open market operations are helpful in controlling credit creation.

HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
The Central Bank can increase the availability of credit in the economy by buying government securities.
HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
 In order to reduce credit in the country, RBI may:
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
_____ is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply. 
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
What is the meaning of open market operations?
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

Monetary Policy is the policy of:

EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
_____ refers to buying and selling of government securities by the Central Bank from/to public and commercial banks. 
 
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

Define bank rate. 

HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
What are the instruments of monetary policy of RBI? 
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
The lender of last resort is the function of:
HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System

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

 

HARD
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
What is money multiplier? What determines the value of this multiplier?
EASY
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
Bank Rate is also known as _____.
MEDIUM
Economics>Macroeconomics>Money and Banking>Money Creation by Banking System
Which of the following statement is correct?