12th Class Economics Money And Banking Question Bank

done Case Based - Money Total Questions - 12

• question_answer1)

  In India, the Central Bank (RBI) has the monopoly right of note issue. RBI issues promissory notes in the country. Each promissory note is a legal tender and contains the words— “I promise to pay the bearer the sum of Rs. ..........”, and is signed by the Governor of RBI. The face value of each promissory note is higher than its commodity value.

  On the basis of above imaginary information, answer the following questions

  Who has the monopoly right of note issue?

   
  A)
  Government of India done clear
  B)
  President of India done clear
  C)
  Prime Minister of India done clear
  D)
  Reserve Bank of India done clear
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• question_answer2)

  In India the Central Bank (RBI) has the monopoly right of note issue. RBI issues promissory notes in the country. Each promissory note is a legal tender and contains the words— “I promise to pay the bearer the sum of Rs. ..........” and is signed by the Governor of RBI. The face value of each promissory note is higher than its commodity value.

  On the basis of above imaginary information answer the following questions:

  When money value > commodity value it is called:

   
  A)
  Full bodied money done clear
  B)
  Fiduciary money done clear
  C)
  Credit money done clear
  D)
  Metallic money done clear
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• question_answer3)

  In India, the Central Bank (RBI) has the monopoly right of note issue. RBI issues promissory notes in the country. Each promissory note is a legal tender and contains the words— “I promise to pay the bearer the sum of Rs. ..........”, and is signed by the Governor of RBI. The face value of each promissory note is higher than its commodity value.

  On the basis of above imaginary information, answer the following questions:

  Promissory notes are:

   
  A)
  limited legal tender done clear
  B)
  unlimited legal tender done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
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• question_answer4)

  In India the Central Bank (RBI) has the monopoly right of note issue. RBI issues promissory notes in the country. Each promissory note is a legal tender and contains the words— “I promise to pay the bearer the sum of Rs. ..........” and is signed by the Governor of RBI. The face value of each promissory note is higher than its commodity value.

  On the basis of above imaginary information answer the following questions:

  Paper currency notes of denominations (Rs.) 2, 5, 10, 20, 100, 200, 500 and 2000 are signed by:

   
  A)
  Prime Minister done clear
  B)
  Mahatma Gandhi done clear
  C)
  President done clear
  D)
  Governor of RBI done clear
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• question_answer5)

  Suppose India's total money supply \[({{M}_{3}})\] stood at Rs. 17,50,000 crore as on August 15, 2020, recording a rise of 9.5% over the same time last year.

  Currency with the public stood at Rs. 25, 75, 000 crore, up 19.5% over the year.

  Demand deposits with banks were up 7% at Rs. 14,70,000 crore. Time deposits with the banks were up by 8% at Rs. 1,25,00,000 crore. The bank credit to commercial sector rose 4% on year to Rs. 1,05,00,000 crore.

  Money supply in the economy has increased over the months. The currency with the public has increased by more than 15% and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 8% since June.

  Due to Covid-19 pandemic in India, people have started keeping money to safeguard themselves against salary cut or job lossess.

  However, money from abroad kept on coming in India. This leads to an increase in demand for the Rupee against Dollar. To maintain stability in foreign exchange rate. RBI sold Rupees and brought Dollars adding to an increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  \[{{M}_{3}}=\,\,{{M}_{1}}+.....................\].

   
  A)
  Net time deposits with commercial banks done clear
  B)
  Precautionary transactory done clear
  C)
  Inflow of foreign currency done clear
  D)
  None of the above done clear
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• question_answer6)

  Suppose India's total money supply \[({{M}_{3}})\] stood at Rs. 17,50,000 crore as on August 15, 2020, recording a rise of 9.5% over the same time last year.

  Currency with the public stood at Rs. 25, 75, 000 crore, up 19.5% over the year.

  Demand deposits with banks were up 7% at Rs. 14,70,000 crore. Time deposits with the banks were up by 8% at Rs. 1,25,00,000 crore. The bank credit to commercial sector rose 4% on year to Rs. 1,05,00,000 crore.

  Money supply in the economy has increased over the months. The currency with the public has increased by more than 15% and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 8% since June.

  Due to Covid-19 pandemic in India, people have started keeping money to safeguard themselves against salary cut or job lossess.

  However, money from abroad kept on coming in IndiThis leads to an increase in demand for the Rupee against Dollar. To maintain stability in foreign exchange rate. RBI sold Rupees and brought Dollars adding to an increase incc \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Money supply is a ................ concept.

   
  A)
  currency done clear
  B)
  stock done clear
  C)
  foreign done clear
  D)
  None of these done clear
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• question_answer7)

  Suppose India's total money supply (\[{{M}_{3}}\]) stood at Rs. 17,50,000 crore as on August 15, 2020, recording a rise of 9.5% over the same time last year.

  Currency with the public stood at Rs. 25, 75, 000 crore, up 19.5% over the year.

  Demand deposits with banks were up 7% at Rs. 14, 70,000 crore. Time deposits with the banks were up by 8% at Rs. 1, 25, 00,000 crore. The bank credit to commercial sector rose 4% on year to Rs. 1,05,00,000 crore.

  Money supply in the economy has increased over the months. The currency with the public has increased by more than 15% and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 8% since June.

  Due to Covid-19 pandemic in India, people have started keeping money to safeguard themselves against salary cut or job lossess.

  However, money from abroad kept on coming in India. This leads to an increase in demand for the Rupee against Dollar. To maintain stability in foreign exchange rate. RBI sold Rupees and brought Dollars adding to an increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Due to the Covid-19 pandemic, people have increase their savings due to....................... motive.

   
  A)
  uncertainty done clear
  B)
  demand done clear
  C)
  precautionary transactory done clear
  D)
  None of the above done clear
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• question_answer8)

  Suppose India's total money supply (\[{{M}_{3}}\]) stood at Rs. 17, 50,000 crore as on August 15, 2020, recording a rise of 9.5% over the same time last year.

  Currency with the public stood at Rs. 25,75,000 crore, up 19.5% over the year.

  Demand deposits with banks were up 7% at Rs. 14,70,000 crore. Time deposits with the banks were up by 8% at Rs. 1,25,00,000 crore. The bank credit to commercial sector rose 4% on year to Rs. 1,05,00,000 crore.

  Money supply in the economy has increased over the months. The currency with the public has increased by more than 15% and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 8% since June.

  Due to Covid-19 pandemic in India, people have started keeping money to safeguard themselves against salary cut or job lossess.

  However, money from abroad kept on coming in India. This leads to an increase in demand for the Rupee against Dollar. To maintain stability in foreign exchange rate. RBI sold Rupees and brought Dollars adding to an increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Money supply has increased due to:

   
  A)
  inflow of foreign currency done clear
  B)
  uncertainty caused by Covid-19 pandemic done clear
  C)
  Both [a] and [b] done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer9)

  India's total Money Supply (\[{{M}_{3}}\]) stood at Rs. 1,78,04,885 crore as on October 23rd 2020, recording a rise of 11.60% over the same time last year. Currency with the public stood at Rs. 26,19,612 up 21.2% over the year. Demand deposits with banks were up 10% at Rs. 16,25,734 crore. Time deposits with banks were also up 10% at Rs. 1,35,18,822 crore. The bank credit to commercial sector rose 5.2% on year to Rs. 1,09,99,604 crore.

  Money supply in the economy has increased over the months. We can look at money supply from the component side and the sources side. One of the ways of measuring money supply in \[{{M}_{3}}\], which is a sum of the currency with the public, the demand deposits with the banking system, which include current deposits and savings deposits, the time deposits with the banking system, such as fixed deposits, recurring deposits, and other deposits of RBI. The currency with the public has grown by more than 21% since June and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 12% since June.

  Heightened uncertainty in India caused by the Corona Virus pandemic has led to a surge in currency in circulation as people hoard cash or park money in accessible deposits to safeguard themselves against salary cut or job losses.

  Foreign money continuously keeps coming into India, leading to an increase in demand for the Rupee against the Dollar. To prevent the Rupee from appreciating, RBI sold Rupees and bought Dollars adding to the increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Money supply in the economy has increased over 5 months since June due to:

   
  A)
  public holding cash for transaction and precautionary motive done clear
  B)
  inflow of foreign exchange done clear
  C)
  uncertainty caused by Corona Virus pandemic done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer10)

  India's total Money Supply (\[{{M}_{3}}\]) stood at Rs. 1,78,04,885 crore as on October 23rd 2020, recording a rise of 11.60% over the same time last year. Currency with the public stood at Rs. 26,19,612 up 21.2% over the year. Demand deposits with banks were up 10% at Rs. 16,25,734 crore. Time deposits with banks were also up 10% at Rs. 1,35,18,822 crore. The bank credit to commercial sector rose 5.2% on year to Rs. 1,09,99,604 crore.

  Money supply in the economy has increased over the months. We can look at money supply from the component side and the sources side. One of the ways of measuring money supply in \[{{M}_{3}}\], which is a sum of the currency with the public, the demand deposits with the banking system, which include current deposits and savings deposits, the time deposits with the banking system, such as fixed deposits, recurring deposits, and other deposits of RBI. The currency with the public has grown by more than 21% since June and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 12% since June.

  Heightened uncertainty in India caused by the Corona Virus pandemic has led to a surge in currency in circulation as people hoard cash or park money in accessible deposits to safeguard themselves against salary cut or job losses.

  Foreign money continuously keeps coming into India, leading to an increase in demand for the Rupee against the Dollar. To prevent the Rupee from appreciating, RBI sold Rupees and bought Dollars adding to the increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Sum of currency with public, demand deposits and time deposits with banks is.............. measure of money supply.

   
  A)
  \[{{M}_{3}}\] done clear
  B)
  \[{{M}_{1}}\] done clear
  C)
  \[{{M}_{2}}\] done clear
  D)
  \[{{M}_{4}}\] done clear
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• question_answer11)

  India's total Money Supply (\[{{M}_{3}}\]) stood at Rs. 1,78,04,885 crore as on October 23rd 2020, recording a rise of 11.60% over the same time last year. Currency with the public stood at Rs. 26, 19, 612 up 21.2% over the year. Demand deposits with banks were up 10% at Rs. 16,25,734 crore. Time deposits with banks were also up 10% at Rs. 1,35,18,822 crore. The bank credit to commercial sector rose 5.2% on year to Rs. 1,09,99,604 crore.

  Money supply in the economy has increased over the months. We can look at money supply from the component side and the sources side. One of the ways of measuring money supply in \[{{M}_{3}}\], which is a sum of the currency with the public, the demand deposits with the banking system, which include current deposits and savings deposits, the time deposits with the banking system, such as fixed deposits, recurring deposits, and other deposits of RBI. The currency with the public has grown by more than 21% since June and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 12% since June.

  Heightened uncertainty in India caused by the Corona Virus pandemic has led to a surge in currency in circulation as people hoard cash or park money in accessible deposits to safeguard themselves against salary cut or job losses.

  Foreign money continuously keeps coming into India, leading to an increase in demand for the Rupee against the Dollar. To prevent the Rupee from appreciating, RBI sold Rupees and bought Dollars adding to the increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  What are the components of money supply?

   
  A)
  Currency held by public done clear
  B)
  Demand deposits with the banks done clear
  C)
  Time deposits with the banks done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer12)

  India's total Money Supply (\[{{M}_{3}}\]) stood at Rs. 1,78,04,885 crore as on October 23rd 2020, recording a rise of 11.60% over the same time last year. Currency with the public stood at Rs. 26,19,612 up 21.2% over the year. Demand deposits with banks were up 10% at Rs. 16,25,734 crore. Time deposits with banks were also up 10% at Rs. 1,35,18,822 crore. The bank credit to commercial sector rose 5.2% on year to Rs. 1,09,99,604 crore.

  Money supply in the economy has increased over the months. We can look at money supply from the component side and the sources side. One of the ways of measuring money supply in \[{{M}_{3}}\], which is a sum of the currency with the public, the demand deposits with the banking system, which include current deposits and savings deposits, the time deposits with the banking system, such as fixed deposits, recurring deposits, and other deposits of RBI. The currency with the public has grown by more than 21% since June and so have bank deposits. This has led to \[{{M}_{3}}\] growing by over 12% since June.

  Heightened uncertainty in India caused by the Corona Virus pandemic has led to a surge in currency in circulation as people hoard cash or park money in accessible deposits to safeguard themselves against salary cut or job losses.

  Foreign money continuously keeps coming into India, leading to an increase in demand for the Rupee against the Dollar. To prevent the Rupee from appreciating, RBI sold Rupees and bought Dollars adding to the increase in \[{{M}_{3}}\].

  On the basis of above imaginary information, answer the following questions:

  Money supply refers to the total..............of money circulation in the economy which can be directly used for transactions.

   
  A)
  flow done clear
  B)
  stock done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
  View Solution play_arrow