Economics Money and Banking MCQ Question Answers

1. ______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

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

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

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

5. M2 = M1 +________________

6. Demand deposits include

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

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

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

10. What is the defect of the barter system?

11. _____is the most liquid of all assets

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

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

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

15. RBI regulates money supply by controlling the stock of

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

17. _____ 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

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