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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

914 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

606 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

722 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

597 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

618 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

662 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

599 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

563 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

562 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

684 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

564 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

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

0 Votes 1 Ans

All financial Institutions are banking institutions

579 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

615 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

608 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

537 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.

558 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

521 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

547 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

512 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)

515 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

527 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

505 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)

554 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

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

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