12th Grade > Economics - 2
THE BANKING SYSTEM MCQs
Total Questions : 27
| Page 1 of 3 pages
Answer: Option B. -> Liabilities of the bank
:
B
Deposits are part of the liabilities of the bank.
:
B
Deposits are part of the liabilities of the bank.
Answer: Option C. -> 3
:
C
There are 3 major motives to hold money.
:
C
There are 3 major motives to hold money.
Answer: Option B. -> Low
:
B
Speculative demand for money is low when interest rates are high as people convert their money to bonds and stocks.
:
B
Speculative demand for money is low when interest rates are high as people convert their money to bonds and stocks.
Answer: Option C. -> 1CRR×Total deposits
:
C
1CRR×Total deposits is the total amount of credit banks can create.
:
C
1CRR×Total deposits is the total amount of credit banks can create.
Answer: Option B. -> Fiscal deficit
:
B
Bank rate, CRR and credit creation are directly linked to the banking system.
:
B
Bank rate, CRR and credit creation are directly linked to the banking system.
Answer: Option B. -> 34
:
B
The cdr is 34.
:
B
The cdr is 34.
Answer: Option C. -> Speculative demand
:
C
The demand for money which arises from not wanting to invest in stocks and bonds fearing capital loss is called speculative demand.
:
C
The demand for money which arises from not wanting to invest in stocks and bonds fearing capital loss is called speculative demand.
Answer: Option C. -> M3
:
C
M3 is the most commonly used measure of money supply.
:
C
M3 is the most commonly used measure of money supply.
Answer: Option D. -> All of these
:
D
The central bank performs all of these functions.
:
D
The central bank performs all of these functions.
Answer: Option A. -> M1
:
A
M1 is most liquid.
:
A
M1 is most liquid.