Demand and Supply of Money

IMPORTANT

Demand and Supply of Money: Overview

This topic covers concepts, such as, Commercial Bank, Central Bank, Narrow Money and Speculative Motive to Hold Money etc.

Important Questions on Demand and Supply of Money

MEDIUM
IMPORTANT

What is meant by a commercial bank? What are the two essential conditions for an institution to become a bank?

HARD
IMPORTANT

The Government of India has recently launched 'Jan Dhan Yojana' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect the national income of the country.

EASY
IMPORTANT

Explain the function of the Central Bank as ' Bankers' Bank and Supervisor.'

EASY
IMPORTANT

State the two components of M1measure of Money Supply.

OR

State any components of M1measure of Money Supply.

 

EASY
IMPORTANT

Explain the 'bank of note issue' function of the Central Bank.

OR

Explain the bank of issue function of the central bank.

EASY
IMPORTANT

State, whether the following statement is true or false: "All financial Institutions are banking institutions."

EASY
IMPORTANT

Explain the 'banker to government' function of the central bank.

OR

Discuss the function of the Central Bank as 'Banker, Agent and Advisor' to the Government.

OR

Explain 'Government's Bank' function of the central bank.

EASY
IMPORTANT

Define money supply and explain its components.

OR

Define money supply and explain its components.

HARD
IMPORTANT

How does a central bank influence credit creation by commercial banks through 'open market operations'? Explain.

EASY
IMPORTANT

Briefly discuss the following functions of central bank: (i) Currency Authority; (ii) Banker to the Government; (iii) Banker's Bank and Supervisor.

EASY
IMPORTANT

Discuss the differences between a central bank and a commercial bank.

EASY
IMPORTANT

Explain any two functions of central bank.

EASY
IMPORTANT

Discuss any one of the following functions of a Central Bank:

(a) As Government's Bank.

(b) Open Market Operations

EASY
IMPORTANT

Explain the 'currency authority' function of central bank. 

EASY
IMPORTANT

Explain the following functions of the central bank: (i) Bank of issue; (ii) Banker's bank.

EASY
IMPORTANT

Explain the 'banker's banks' and 'supervisor' function of the central bank.

OR

Explain 'banker's bank' function of Central bank. 

EASY
IMPORTANT

Explain Central Bank's function as currency authority.

OR

Explain 'bank of issue' function of central bank. 

OR

Describe the Bank of currency issue' function of the Central Bank.

EASY
IMPORTANT

Explain the 'lender of last resort' function of the Central Bank.

EASY
IMPORTANT

Explain the function of a Central Bank as a banker to the government. 


OR

Explain 'banker to the government' function of Central Bank. 

OR

Explain 'Government's Bank' function of central bank.

OR

Discuss the function of Central Bank as 'Banker, Agent and Advisor' to the Government.

EASY
IMPORTANT

State any three points of distinction between Central Bank and Commercial Banks.