Economics Money and Banking MCQ Question Answers

1. Which is the most liquid measure of the money supply?

2. What is the defect of the barter system?

3. What items are not included in the money supply measure?

4. _____ was a new initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy

5. Which of the following is the apex bank of India?

6. The policy of the government regarding the level of government spending and transfers and the tax structure

7. M2 = M1 +________________

8. Demand deposits include

9. Which bank can be termed as lender of last resort?

10. The RBI can influence money supply by changing the rate at which it gives loans to the commercial banks. This rate is called: ________

11. _____is the most liquid of all assets

12. RBI regulates money supply by controlling the stock of

13. Under Transaction Motive, the principal motive for holding money is _____

14. Which of the following is the narrow measure of the money supply?

15. Banks that accept deposits for lending purpose are known as _________

16. The ratio of total deposits that a commercial bank has to keep with RBI is called:

17. ______refers to Purchases or sales of government securities by the central bank from the general public in the bond market in a bid to increase or decrease the money supply in the economy

18. This currency issued by the central bank can be held by the public or by the commercial banks, and is called