Demand and Supply of Money
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
What is meant by a commercial bank? What are the two essential conditions for an institution to become a bank?

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.

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

State the two components of measure of Money Supply.
OR
State any components of measure of Money Supply.

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

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

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.

Define money supply and explain its components.
OR
Define money supply and explain its components.

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

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

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

Explain any two functions of central bank.

Discuss any one of the following functions of a Central Bank:
(a) As Government's Bank.
(b) Open Market Operations

Explain the 'currency authority' function of central bank.

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

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

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.

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

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.

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