12th Grade > Economics - 2
THE BANKING SYSTEM MCQs
Total Questions : 27
| Page 3 of 3 pages
Answer: Option C. -> Both (a) and (b)
:
C
Credit cards boost aggregate demand and encourage spending.
:
C
Credit cards boost aggregate demand and encourage spending.
Answer: Option C. -> Vault cash
:
C
Vault cash refers to the cash reserves held by the bank itself, over and above the mandated CRR amount.
:
C
Vault cash refers to the cash reserves held by the bank itself, over and above the mandated CRR amount.
Answer: Option A. -> Increase
:
A
With higher incomes, the precautionary demand will increase because expenditures may increase.
:
A
With higher incomes, the precautionary demand will increase because expenditures may increase.
:
Spread is the rate of interest on loans minus the interest on deposits.
Answer: Option B. -> Secondary deposits
:
B
Derivative deposits are secondary deposits.
:
B
Derivative deposits are secondary deposits.
Answer: Option D. -> All of these
:
D
A commercial bank provides long-term and short-term loans and creates credit.
:
D
A commercial bank provides long-term and short-term loans and creates credit.
:
Liquidity preference is demand for money balances.
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