MACRO ECONOMICS ISSUES & POLICIES
(MEIP)
MCQS
Topic : Money and banking ,
Monetary policy and Fiscal policy
1. Money includes:
(a) Currencies and demand deposits
(b) Bonds, government securities
(c) Equity shares
(d) All of the above
2. One of the following is not an example of near money
(a) Treasury bills of the government of India
(b) Equity shares of a public limited company
(c) Bill of exchange
(d) Bonds and debentures
3. M1 in the money stock in India refers to
(a) Post office savings deposits
(b) Total post office deposits
(c) C+DD+OD
(d) Time deposits with banks
4. The basic distinction between narrow and broad money is the
(a) Treatment of post office deposits
(b) Treatment of time deposits of banks
(c) Treatment frequency
(d) Treatment of demand deposits of commercial bank
5. Time deposits with banks are included in ___________ measure of money stock.
(a) M1
(b) M3
(c) M4
(d) M3 & M4
6. Money is
(a) Constant in Purchasing power
(b) Acceptable only when it has intnnsic value
(c) The most liquid of all assets
(d) All of the above
7. 'Money is what money does' . Who among the following gave the definition of money?
(a) Crowther
(b) Engine
(c) Bustein
(d) Stanley Wither
8. Money can be defined as
(a) Currency and coins
(b) Cheques and drafts
(c) Anything generally accepted as medium of exchange and means For paying debt obligations
(d) Foreign Currencies
9. The essential characteristics of whatever serves as money is that it must
(a) Be generally acceptable
(b) Not be wholly fiduciary
(c) be issued by state
(d) Have some intrinsic value
10. The chief function of money is that of
(a) A medium of exchange
(b) A reserve base for credit creation
(c) Providing liquidity
(d) None of the above
11. The major primary function of money in modern economies Is to serve as:
(a) A standard for deferred payments
(b) A medium of exchange
(c) A store of value
(d) A transfer of value
12. A purchasing from a store against the promise to pay the money at later date is a
(a) A standard for deferred payments
(b) A medium of exchange
(c) A store of value
(d) A transfer of value
13. Narrow or most liquid money refer to:
(a) M4
(b) M3
(c) M2
(d) M1
14. Broad money refers to:
(a) M1
(b) M2
(c) M3
(d) M4
15. Which of the following would cause rise in interest rates?
(a) The rise in general level of prices
(b) The rise in standard of living
(c) The increase In demand of money
(d) The increase in money supply
16. Which of the following is considered as least profitable asset of commercial banks?
(a) Cash In hand
(b) Money at call
(c) Bills discounted
(d) Loans and advances
17. The most liquid asset next, to cash which the banks possess is
(a) Advance to customers
(b) Money at call
(c) Treasury bills
(d) Inland bills
18. Maintaining a cash reserve ratio of 20% with primary deposits of ₹ 100 the derivative deposits (DD) created by banks would be.
(a) ₹ 250
(b) ₹ 150
(c) ₹ 400
(d) ₹ 40
19. If the banking system has reserves of ₹500 crore and reserve, requirement is 10%, to what extent can the system support demand deposits?
(a) ₹ 5000 crore
(b) ₹ 2000 crore
(c) ₹ 10000 crore
(d) ₹ 5000 crore
20. Multiple Credit creation is possible —
(a) By RBI
(b) By one commercial banks
(c) When large number of commercial banks join their hands together
(d) None of these
21. When commercial banks create credit they, increase the money supply (True / false)
Ans : True
22. Banks perform the function of
(a) Accepting deposits
(b) Advancement of loans
(c) Agency functions
(d) All of the above
23. Which of the following is not a function of the commercial banks?
(a) Safe deposit facilities
(b) Cheque facilities to the customers
(c) Advancement of loans
(d) Acting as a lender of last resort
24. 'The lender of last resort‘ means central bank coming to the rescue of other banks in financial crisis (True / false)
25. Which of the following is not function of RBI?
(a) Credit control
(b) Exchange control
(c) Credit creation
(d) Government Bank
26. Which of the following is not a basic objective of monetary policy?
(a) Price stability
(b) Exchange stability
(c) Full employment and maximum output
(d) Rational tax structure
27. Which of the following is not an instrument of monetary policy?
(a) Open market operations
(b) Bank rate policy
(c) Variable Reserve requirement
(d) Government Expenditure
28. Who is called the 'bank of issue?
(a) RBI
(b) SBI
(c) IDBI
(d) ICICI
29. Who is a banker‘s bank
(a) SBI
(b) Central Bank
(c) UCO Bank
(d) RBI
30. Which of the following policies is usually formulated and implemented by the RBI?
(a) Monetary policy
(b) Fiscal policy
(c) Export-import policy
(d) Prices and incomes policy
31. Monetary policy aims at
(a) Controlling bank credit
(b) Controlling agriculture credit
(c) Controlling export credit
(d) Controlling credit to the government
32. Open market operations refers to purchase and sale of government securities by the RBI (True / False)
33. Bank rate refers to the rate
(a) At which the commercial banks accept deposits years
(b) At which the commercial banks lend money for short term to their customers
(c) At which the commercial banks get re-discount facilities from the central
(d) None of them
34. In order to encourage investment in the country, the RBI may
(a) Reduce CRR
(b) Increase CRR
(c) Sell securities in the open market
(d) Increase Bank Rate
35. During depression, it is advisable to
(a) Decrease Bank Rate and Purchase Securities in the market
(b) increase Bank Rate and purchase securities in the open market
(c) Decrease Bank Rate and sell securities in the open market
(d) Increase Bank Rate and sell securities in the open market
36. Increase in the reserve ratio requirements leads to
(a) A contraction in the commercial banks ability to create credit
(b) As expansion in the commercial banks ability to create credit
(c) Both of the above
(d) None of the above
37. Increase in bank rates generally is followed by
(a) An increase in market rate of interest
(b) A fall in market rates of interest
(c) A rise only in the deposits rates but not the lending rates
(d) A rise only in the lending rates
38. When the bank rate increases, the demand for loans
(a) Reduces
(b) increase marginally
(c) Remains unchanged
(d) Increase drastically
39. …………refers to the portion of total deposits of a commercial bank, which is has to keep with RBI in the form of cash reserves
(a) CRR
(b) SLR
(c) Bank Rate
(d) Repo Rate
40. _______ refers to that portion of total deposits of a commercial bank, which is has to keep with itself in the form of liquid assets.
(a) CRR
(b) SLR
(c) Bank Rate
(d) Repo Rate
41. Statutory liquidity ratio (SLR) of commercial banks means
(a) The % of cash & equivalent assets banks keep with them under rules
(b) The bank rate which is reference rate also
(c) The ratio of government and other gilt edged securities to liquid liabilities
(d) The reserve money
42. When Central bank buys the securities what would happen to money supply?
(a) Money supply decreases
(b) Money supply increases
(c) Money supply may increase or decrease
(d) Money circulation is not affected by the buying or selling of securities
43. Which of the following methods is not used by the RBI for control of credit in country
(a) Bank Rate Policy
(b) Open Market Operations
(c) Changes in the Cash Reserve Ratio
(d) Devaluation of Rupee
44. Bank rate open market operations, changes in reserve requirement are
(a) Quantitative controls
(b) Qualitative control
(c) Combinations of (a) & (b)
(d) None of them
45. Which of the following is not a selective credit control method?
(a) Rationing of credit
(b) Direct action
(c) Changes in margin requirements
(d) Variable Reserve requirements
46. Selective credit controls are —
(a) Qualitative controls
(b) Quantitative controls
(c) Both (a) & (b)
(d) Neither (a) nor (b)
47. The major quantitative monetary tool available with the central bank is
(a) rationing of credit
(b) Margin requirement
(c) reserve ratio requirements
(d) Regulation of consumer credit
48. Which of the following methods can be used as an instrument of qualitative control of credit by the Central Bank?
(a) Bank Rate Policy
(b) Open Market Operations
(c) Changes in Margin Requirements
(d) Variations in Reserve Ratio
49. One of the following is not an anti-inflationary measure
(a) Rise in the bank rate
(b) raising the reserve rat requirements
(c) Buying securities in the open market
(d) None of the above
50. Cheap/ Loose money policy is adopted during
(a) Boom
(b) Inflation
(c) Recession
(d) Revival
51. To control the inflation, the policy adopted by RBI will be called —
(a) Expansionary
(b) Liberal
(c) Tight /Dear
(d) Cheap
52. One of the following is perfect example of near money
(a) Equality shares of Ranbaxy laboratories
(b) Bill of exchange
(c) Bonds and debenture
(d) Gold
53. The basis difference between money stock measure M3 and M4 is:
(a) M3 is more than M4
(b) M4 includes all post office deposits, where as in M3 there are not included
(c) M1 is part of M4 where as M1 is not part of M3
(d) M3 is part of M1 and M4 is not part of M1
54. Which of the following statement (S) is (are ) true?
(i) M1 = Currency with public + Demand deposits with bank
(ii) M2 = M1 + post office saving deposits
(iii) M3 = M1 + Time deposits with bank
(iv) M4 = M3 + All post office deposits
(a) Only 1 above
(b) Both I & IV above
(c) Both II and III above
(d) all of the above
55. Money in traditional sense:
(a) Serves as a medium of exchange
(b) Serves as a store of value
(c) Serves as both medium of exchange and store of value
(d) Serves neither as medium of exchange and store of value
56. When you purchase your monthly ration from the, departmental store against your promise to pay the amount equivalent to the value of goods purchased, money serves as
(a) A standard for deferred payments
(b) A medium of exchange
(c) A store of value
(d) A transfer of value
57. In an economy narrow money is equal to the sum of_____
(i) RBI currency notes in circulation
(ii) Rupee coins and notes in circulation
(iii) Small coins
(iv) Demand deposits with banks and other deposits with RBI
(a) Both (i) and (ii) above
(b) Both (ii) and (iii) above
(c) All (i), (ii), (iii), (iv) above
(d) Only (i) and (iv) above
58. Which is the most liquid measure of money supply?
(a) M1
(b) M2
(c) M3
(d) M4
59. Narrow money refer to
(a) M4
(b) M3
(c) M 2
(d) M1
60. Which would cause interest rates to rise?
(a) The rise is general level of price
(b) The rise in standard of living
(c) The increase in demand of money
(d) The increase in money supply
61. The least profitable asset that the commercial banks possess is
(a) Cash in hand
(b) Money at call
(c) Bills discounted
(d) Loans and advance
62. When the commercial banks create credit they are, in effect, increasing
(a) The national debt
(b) The supply of money
(c) The purchasing power of the rupee
(d) The real wealth of the country
63. Agency function are
(a) Carried out by RBI
(b) Carried out by commercial banks
(c) Not carried out by commercial banks
(d) None of these
64. Which of the following statements about banks is incorrect?
(a) Banks encourage saving habits among people.
(b) Banks mobilize savings and make them available for production.
(c) Bank help in creating credit Money
(d) None of the above
65. 'The lender of last resort‘ means
(a) The central hank meets all reasonable demands to help commercial banks
(b) The central bank coming to the rescue of other banks in financial crisis
(c) The central bank grants loans to banks and general public in times of crisis
(d) All of the above
66. By 'lender of last resorts' we mean
(a) The central banks meets sill reasonable demands to help commercial banks
(b) The central bank provides subsidy to commercial banks
(c) The central bank grants loans to banks and general public in times of crisis
(d) All of the above
67. The central banks is not expected to perform the function of
(a) The bank to the government
(b) Accepting deposits from commercial banks
(c) Accepting deposits from general public
(d) Acting as a clearing house
68. Who is fiscal agent & adviser to government in monetary & financial matters in India
(a) SBI
(b) IDBI
(c) ICICI
(d) RBI
69. Which is the Central Bank of India?
(a) State Bank of India
(b) Punjab and National Bank
(c) Oriental Bank of Commerce
(d) Reserve Bank of India
70. Find the odd one out
(a) State Bank of India
(b) Reserve Bank of India
(c) Bank of Baroda
(d) Bank of India
71. Note issue is a Function carried out by -
(a) central Bank
(b) Commercial Bank
(c) Both a & b
(d) None of these
72. Who is the custodian of national reserves of international currency?
(a) SBI
(b) IDBI
(c) RBI
(d) ICICI
73. The custodian of foreign exchange refers to
(a) Central Bank
(b) Any particular commercial bank
(c) All commercial bank
(d) None of these
74. Who is custodian of monetary reserves in India
(a) NABARD
(b) SIDBI
(c) SBI
(d) RBI
75. Who is the official 'lender of the last resort' in India?
(a) SBI
(b) PNB
(c) RBI
(d) OBC
76. Which of the following policies is usually formulated and implemented by the central bank of a country?
(a) Monetary policy
(b) Fiscal policy
(c) Export-import policy
(d) Prices and incomes policy
77. Open market operations refers to:
(a) Borrowing by schedule banks from the RBI,
(b) Lending by commercial banks to industry and trade
(c) Purchase & sale of government securities by RBI
(d) deposit mobilization
78. Open market operation (OMO) is the part of
(a) Income policy
(b) Fiscal policy
(c) Credit policy
(d) Labor policy
79. If the central bank buys financial securities in the open market to increase the monetary base, then it is an example of……..
(a) Lender of last resort
(b) Financial intermediation
(c) Open market operation
(d) Financial regulation
80. ……… is the official minimum rate at which the central bank of a country is prepared to rediscount approved bills held by banks
(a) CRR
(b) SLR
(c) Bank rate
(d) Repo rate
81. In order to promote growth and to generate employment, RBI may
(a) Reduce CRR, Reduce Discount rate and Purchase Government Securities
(b) Increase SLR, Reduce Bank rate and Purchase Government Securities
(c) Increase CRR, Increase Bank rate and Sell Government Securities
(d) Reduce SLR, Increase Discount rate and Sell Government Securities
82. Variable reserve requirement are
(a) SLR
(b) CRR
(c) Both a & b
(d) None of these
83. In order to control credit
(a) CRR should be increased and Bank rate should be decreased
(b) CRR should be reduced and Bank rate should be reduced
(c) CRR should be increased and Bank rate should be decreased
(d) CRR should be reduced and Bank rate should be reduced
84. In order to discourage investment in the economy the RBI may
(a) Increase Bank rate
(b) Decrease bank rate
(c) Buy securities in the open market
(d) Decrease CRR
85. Reduction in the reserve ratio, prescribed by the central bank for commercial bank
(a) Favorably affects credit creation banks
(b) Adversely affects credit creation of banks
(c) Does not affect
(d) None of the above
86. What effect would the buying of securities by central bank have on the money supply
(a) Money supply decreases
(b) Money supply increases
(c) Money supply may increases or decreases
(d) Money circulation is not affected by the buying or selling of securities
87. Which of the following can be adopted as a method of credit control?
(a) Bank rate policy
(b) Variable reserve systems
(c) Selective credit control
(d) All of the above
88. Selective credit control consist of
(i) Open markets operations
(ii) regulation of consumer credit
(iii) Moral suasion
(iv) Rationing of credit
(a) (i), (ii) and (iii) only
(b) (ii), (iii) and (iv) only
(c) (i), (iii) and (iv) only
(d) (i), (ii) and (iv) only
89. If the Central Bank sells securities in the open market
(a) Public deposits with Central Bank increase and notes and coins decrease
(b) Public deposits with Central Bank increase and banker deposits decrease
(c) Special deposits with Central Bank increase banker deposits decrease
(d) Bankers deposits decrease and Government securities decrease
90. What functions are performed by money?
(a) served as a medium of exchange
(b) common measure of value
(c) store of values
(d) All the above
91. Which of the following is the main function of money according to modern economists?
(a) Medium of exchange
(b) Common measure of value
(c) Store of value
(d) All the above
92. Broad money refers to
(a) M1
(b) M2
(c) M3
(d) M4
93. Which is the Central Bank of India?
(a) State Bank of India.
(b) Punjab and National Bank.
(c) Oriental Bank of Conunerce.
(d) Reserve Bank of India.
94. Who is the official 'lender of the last resort' in India?
(a) SBI
(b) PNB
(c) RBI
(d) OBC
95. _________ refers to that proportion of total deposits of a commercial bank which it has to keep with RBI in the form of cash reserves.
(a) CRR
(b) SLR
(c) Bank Rate
(d) Repo Rate
96. ___________ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by banks.
(a) CRR
(b) SLR
(c) Bank Rate
(d) Repo Rate
97. In order to control credit in the country, the RBI can
(a) Buy securities in the open market
(b) Reduce CRR
(c) Sell securities in the open market.
(d) Reduce Bank Rate
98. In order to encourage investment in the country, the RBI may
(a) Reduce CRR
(b) Increase CRR.
(c) Sell securities in the open market.
(d) increase Bank Rate.
99. In order to discourage investment in the economy, the RBI may
(a) Increase Bank Rate.
(b) Decrease Bank Rate.
(c) Buy securities in the open market.
(d) Decrease CRR.
100. Who is the custodian of monetary reserves in India?
(a) SRI
(b) SIDBI
(c) NABARD
(d) RBI
Part-2
MEIP
S.Y B.COM
SEMESTER - 4
MACRO ECONOMIC ISSUES AND POLICIES
(MEIP)
MCQS
1. M1 does not include Which of the following
A. Time deposit
B. Currency
C. Other deposits
D. Demand deposit
2. If Rs 1000 is with drawn from Saving bank account, then this transaction wil
A. Increase money supply
B. Decrease money supply
C. Not change money supply
D. Increase or decrease
3. Central Bank's OMO means
A. Purchase of commercial bills
B. Purchase of shares
C. Buying of government securities
D. Sale of commercial bills
4. Bank rate is the rate at which
A. Government bills are discounted
B. Commercial bank lend to the public
C. Central Bank lend to non banking financial institution
D. Commercial banks bills of exchange discounted
5. The statement "money is what money does" was given by
A. Walker
B. Shaw
C. Crowther
D. Gurley
6. In an inflationary period the appropriate policy of the central bank will be to
A. Reduce CRR
B. Decrease bank rate
C. Sell government securities
D. Increase investment
7. In an economy high power money supply means
A. Monetary liabilities of Central Bank
B. Currency with public
C. Monetary liabilities of Central Bank and government money
D. Time and demand deposits of the commercial banks
8. Credit creation by the commercial banks is directly affected by
A. Inflation
B. Depression
C. Legal ratios
D. Money multiplier
9. The following is not an objective of monetary policy
A. To increase tax revenue
B. Price stability
C. To expand credit
D. To promote growth
10. An important function of money is not to provide a statement of
A. Deferred payment
B. Measuring welfare
C. Store value
D. Exchange
11. Give the money multiplier supply of money will depend on
(A) Excess reserves
(B) Total reserves
(C) Legal reserves
(D) None of the above
12. If 1000 is withdrawn from a savings account, then this transaction wil
(A) Increase money supply
(B) Not change money supply
(C) Decreases money supply
(D) AIl of the above
13. An important function of money is its quality to provide a standard for
(A) Consumer choice
(B) Satisfaction
(C) Deferred payments
(D) Marginal revenue
14. The measure of money in terms of M4, M3, M2 and M1 are
(A) In descending order of liquidity
(B) Not related to liquidity
(C) Having the same liquidity
(D) In ascending order of liquidity
15. High powered money is made up of
(A) Other deposits of RBI
(B) Near money assets
(C) Currency with public
(D) Gold stock
16. During inflation, the appropriate policy of the central bank win be to
(A) Increase CRR
(B) Sell government securities
(C) Increase investment
(D) Reduce taxes
17. Bank create money out of
(A) Their total assets
(B) Their goodwill
(C) Their cash deposits
(D) Their securities
18. Commercial banks credit creation will be equal to
(A) Actual deposit times ratio of cash reserves / 100
(B) Actual deposit times 100 / ratio of cash reserves
(C) Actual deposit + 100 / r
(D) Actual deposits - r / 100
19. The following is an objective of monetary policy
(A) To maintain price stability
(B) To expand trade
(C) To cortisol growth
(D) Reduce welfare
20. M1 also includes
(A) Post office savings
(B) Deposit in savings accounts
(C) Foreign exchange reserves
(D) Investment in shares
21. Which method of credit control refers to the sale and purchase of a securities, bills and bonds of a government as well as private Financial Institution by central bank?
(A) Bank rete
(B) Discount rate
(C) Open market operation
(D) Variable reserve ratio
22. According which approach, time deposit with commercial bank is included in the measurement of money supply.
(A) Chicago
(B) Conventional
(C) Gurley - Shaw
(D) Central Bank
23. Minimum down payment and maximum period of a repayment are to devices used in _______ method of selective credit control.
(A) Moral suasion
(B) Rationing of credit
(C) Direct action
(D) Regulation of consumer credit
24. Which among the following doesn't come under the merit of regulation of margin requirement?
(A) It is a simple and easy to administer
(B) It is a discriminatory between borrowed and lender
(C) It is equally applicable to commercial bank and NBFI
(D) It is very effective anti - inflationary device.
25. What is the currency deposit ratio?
(A) Ratio of money held by public in bank deposits to that of money held by public in currency
(B) Ratio of money held by the public in currency to that of money held in bank deposits.
(C) Ratio of money held in demand drafts to that of money held in treasury bonds.
(D) None of the above
26. Credit creation capacity of commercial banks
(A) Reduce the supply of money
(B) Increase supply for money
(C) Does not make any change in money supply
(D) It reduces liabilities of banks
27. The success of commercial banks portfolio management depends on
(A) Maintenance case reserve ratio
(B) Lending loans and advances, bills discounted and investment on government securities
(C) Ability to get money at call and short notice
(D) All of the above
28. Bank rate is
(A) Bank reserves
(B) Rate of interest of commercial
(C) Market rate of interest
(D) The rate at which the central bank of a country is willing to discount bills
29. An index number is used to:
(A) To measure changes in the quantity
(B) To measure changes in a demand
(C) To measure changes in the price
(D) To measure changes in the value of a variable over time.
30. The term open market operation precisely means.
(A) Buying other bank instruments
(B) Purchase or sale by a central bank of any kind of paper in which it deals
(C) Purchase of bills
(D) Sale of securities
31. High Power money means which of following ?
(A) Issued by commercial bank
(B) High value of money
(C) Higher currency notes
(D) Backed by reserve and value guaranteed by the government
(I) Deposit multiplier is the inverse of The reserve requirement ratio
(II) Money supplied by banks is called credit money.
(A) II Only
(B) I only
(C) Both
(C) None
33. According to whom the central bank is considered as the 'lender of the last resort.'
(A) Colin clark
(B) Hawtrey
(C) Samuelson
(D) Vera smith
34. In the face of inflation, which monetary measure of price control would the central bank adopt?
(A) Buy government to securities
(B) Increase in CRR
(C) Decrease bank rate
(D) Decrease SLR
35. Which of the following is found most effective in calculating price index number?
(A) Arithmetic mean
(B) Harmonic mean
(C) Time series
(D) Index numbers
36. The amount of total derivative deposits created by bank does not dependent on
(A) Spending habits of a people
(B) Demand for bank loans
(C) Primary deposits
(D) Efficiency of banking systems
37. The sale of securities by Central Bank leads to
(A) Expansion of credit
(B) Contraction of credit
(C) No change in money supply
(D) Inflation in the economy
38. Increase in bank rate leads to
(A) No change in money supply
(B) Fall in rate of interest
(C) Borrowing will be discouraged
(D) Borrowing will be encouraged
39. In the terminology of economics and money demand, the terms M1 and M2 are also known as:
(A) Broad money
(B) Short money
(C) Long money
(D) Narrow money
40. If a commercial bank has Rs. 100cr as deposit and 10% is the required reserve ratio, then it will create credit to the extent of Rs.900cr. when the central bank raises the required reserve ratio to 20% then banks power to create credit will be.......
(A) 800 Cr
(B) 1000 Cr
(C) 400 Cr
(D) 1200 Cr
41. Stagflation means
(A) Decrease in inflation
(B) Increase in inflation
(C) Stagnant economy and a persisting inflation
(D) Non inflationary economy with Stagnation
42. The ratio of a new price to the base year price is called the:
(A) Price Absolute
(B) Price decrease
(C) Price increase
(D) Price relative
43. Number of times a unit of a money changes hands in the courses of a year is called _______
(A) Value of money
(B) Velocity of money
(C) Purchasing power of money
(D) Supply of money
44. When Mr. "A" and "B" exchange under barter system where double co - incidence exist.
(A) A agrees the product with B exchanges and B agrees the product which "A" exchanges.
(B) Both "A" and "B" refuses to each other product
(C) The market for their products determine their exchange
(D) "A" agrees to accept "B" s product but "A" not ready to give his product
45. "Anything" which is widely accepted in payment for goods or in discharge of other kind of business obligation", this definition of money is given by.......
(A) D.H. Roberston
(B) Walker
(C) Milton Friedman
(D) G.D.H. cole
46. Which of these is the high power money?
(A) H = R + DD
(B) H = C + DD
(C) H = C + R
(D) H = C + DD + OD
47. Consider the following statement and identify the correct ones:
(I) Money decelerates the pace of production & growth
(II) Money works as a store of a value
(A) II Only
(B) I Only
(C) Both
(D) None
48. Asset portfolio management of commercial bank have the objectives.
(A) Take care of both the liquidity and profitability
(B) Take care of a liquidity
(C) Maximizing profitability
(D) Maintenance of its liabilities
49. Value of money is calculated with the help of ______
(A) Weights of representative goods
(B) Price of current year
(C) Privet index number
(D) Price of base year
50. RBI issues currency notes of rupees - 10, 20, 50, 100, & 2000 denominations and calls it _______
(A) Narrow money
(B) Reserve money
(C) Credit money
(D) All of the above
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