Q213. The money multiplier in an economy increases with which one of the following?

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The corre

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be:

Supply of money remaining the same when there is an increase in demand for money, there will be:

In the context of the Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to c

The lowering of Bank Rate by the Reserve Bank of India leads to:

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Oth

Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

If the interest rate is decreased in an economy, it will:

With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank

Which one of the following links all the ATMs in India? (a) Indian Banks’ Association (b) National Securities Depository Limited (c) National Payments

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news? (a) The incentive given by a bank to a merchant fo

Consider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset

Which one of the following statements correctly describes the meaning of legal tender money? (a) The money which is tendered in courts of law to defra

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Secur

With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by

Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI