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Category True or False

True or False 25 Questions

0 Votes 1 Ans

Demand deposits which come back to the commercial banks through their lending process are known as secondary deposits

1.18K viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Margin requirement is raised by the Central Bank to increase money supply

801 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Demand deposits are equal to cash deposits of the people with the Commercial Banks

922 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Higher the Legal Reserve Ratio, greater would be the credit creation in the economy

756 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Repo Rate is fixed by the Central Bank, whereas, Reverse Repo Rate is fixed by the Commercial Banks

799 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

To increase the money supply in the economy, central bank reduces the margin requirements

902 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True 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

887 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Loans offered by commercial banks are equal to deposits received by them

767 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Size of money multiplier is given by the inverse of LRR

748 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

There is an inverse relationship between legal reserve ratio (LRR) and value of money multiplier

883 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Cash reserve ratio and statutory liquidity ratio are fixed by the commercial banks themselves

776 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Purchase of securities in the open market by the commercial banks reduces their credit crediting power

767 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

All financial Institutions are banking institutions

767 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True 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

852 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit

899 viewsAnurag Pathak Changed status to publish December 24, 2023Money and Banking True or False

0 Votes 1 Ans

Money as a store of value helps to shift purchasing power from present to future

713 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

Use of money separates the acts of sale and purchase.

754 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

Money helps in capital formation and economic development of the economy

700 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

Money supply includes demand deposits of the people with the Commercial Banks

740 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

Lack of double coincidence of wants exists in barter exchange as all commodities are not of equal value

697 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

M1 is also known as transaction money (True or False with Reasons)

677 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

M1 includes net demand deposits and not gross demand deposits

728 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

High-powered money includes only the cash reserves of commercial banks

681 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

Money Supply is a flow concept (True or False with Reasons)

732 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

0 Votes 1 Ans

There is no common denomination under barter exchange to express the exchange ratios

753 viewsAnurag Pathak Changed status to publish December 15, 2023Money and Banking True or False

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