Demand and Supply of Money
Demand and Supply of Money: Overview
This topic covers concepts such as, Demand and Supply of Money etc.
Important Questions on Demand and Supply of Money
Which of the following is a tool used by central banks to control the money supply?
Which variable is NOT directly related to the demand for money?
Which economic theory is most closely associated with the demand for money?
What is the primary determinant of the supply of money in an economy?
Which of the following factors primarily affects the demand for money in an economy?
When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is:
RBI can influence money supply by changing the Bank rate. An increase in Bank rate can be termed as:
Match List I with List II:
| List I | List II |
| (A) Flexible exchange rate | (I) Market forces |
| (B) Devaluation | (II) Pegged exchange rate |
| (C) Fixed exchange rate | (III) Floating exchange rate |
| (D) Depreciation | (IV) Government |
Choose the correct answer from the options given below :
Which of the following is NOT a function of Central Bank?
Match List I with List II
| List I | List II |
| (A) Bank Rate | (I) Securities are pledged in order to repurchase |
| (B) Marginal Standing Facility | (II) Minimum rate at which funds are provided for the long term |
| (C) Repo Rate | (III) Also known as Penal Interest Rate |
| (D) Reverse Repo Rate | (IV) Central Bank borrows funds from commercial banks |
During festive season, the currency deposit ratio:
