Money Supply
Economics ⇒ Money and Banking
Money Supply starts at 11 and continues till grade 12.
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Define money supply.
Describe the relationship between high powered money and money supply.
Describe the role of the Reserve Bank of India in controlling money supply.
Explain the difference between M1 and M2 measures of money supply.
Explain the impact of an increase in statutory liquidity ratio (SLR) on money supply.
Explain the process of credit creation by commercial banks and its impact on money supply.
Explain the term 'high powered money'.
Explain the term 'other deposits with RBI' as used in the context of money supply.
Which of the following best describes 'demand deposits'? (1) Deposits that can be withdrawn on demand (2) Deposits with a fixed maturity (3) Deposits in foreign currency (4) Deposits with post office savings banks
Which of the following factors does NOT affect money supply? (1) Cash reserve ratio (2) Statutory liquidity ratio (3) Foreign exchange reserves (4) Weather conditions
Which of the following is a liability of the RBI? (1) Currency in circulation (2) Gold reserves (3) Government securities (4) Foreign exchange reserves
Which of the following is considered as 'near money'? (1) Currency notes (2) Demand deposits (3) Time deposits (4) Coins
Fill in the blank: M4 measure of money supply includes M3 plus _______.
Fill in the blank: Open market operations refer to the buying and selling of _______ by the central bank.
Fill in the blank: The _______ effect refers to the process by which an initial deposit leads to a greater final increase in the total money supply.
Fill in the blank: The _______ is the central monetary authority in India.
State whether the following is true or false: 'A decrease in the reserve ratio increases the money multiplier.'
State whether the following is true or false: 'An increase in the cash reserve ratio leads to a decrease in money supply.'
State whether the following is true or false: 'Currency with the public is a part of high powered money.'
State whether the following is true or false: 'Money supply can be influenced by public's preference for holding cash.'
