Category True or False True or False 25 Questions Ask question Search Order By: ActiveClear Filter 0 Votes 1 Ans Demand deposits which come back to the commercial banks through their lending process are known as secondary deposits 709 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Margin requirement is raised by the Central Bank to increase money supply 493 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Demand deposits are equal to cash deposits of the people with the Commercial Banks 603 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Higher the Legal Reserve Ratio, greater would be the credit creation in the economy 479 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Repo Rate is fixed by the Central Bank, whereas, Reverse Repo Rate is fixed by the Commercial Banks 496 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans To increase the money supply in the economy, central bank reduces the margin requirements 537 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans RBI acts as the banker to the central government and commercial banks act as banker to the state governments 460 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Loans offered by commercial banks are equal to deposits received by them 441 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Size of money multiplier is given by the inverse of LRR 434 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans There is an inverse relationship between legal reserve ratio (LRR) and value of money multiplier 554 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Cash reserve ratio and statutory liquidity ratio are fixed by the commercial banks themselves 457 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Purchase of securities in the open market by the commercial banks reduces their credit crediting power 455 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans All financial Institutions are banking institutions 465 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Commercial banks do not contribute to quantum of money supply in the economy as they do not have note-issuing authority 496 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit 472 viewsAnurag Pathak Changed status to publish December 24, 2023Money and BankingTrue or False 0 Votes 1 Ans Money as a store of value helps to shift purchasing power from present to future 443 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans Use of money separates the acts of sale and purchase. 459 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans Money helps in capital formation and economic development of the economy 420 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans Money supply includes demand deposits of the people with the Commercial Banks 452 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans Lack of double coincidence of wants exists in barter exchange as all commodities are not of equal value 430 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans M1 is also known as transaction money (True or False with Reasons) 430 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans M1 includes net demand deposits and not gross demand deposits 433 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans High-powered money includes only the cash reserves of commercial banks 419 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans Money Supply is a flow concept (True or False with Reasons) 456 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False 0 Votes 1 Ans There is no common denomination under barter exchange to express the exchange ratios 441 viewsAnurag Pathak Changed status to publish December 15, 2023Money and BankingTrue or False Question and answer is powered by 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