Money and Banking in India

Economics ⇒ Indian Economy

Money and Banking in India starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Money and Banking in India. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

Define money. What are its primary functions?

Explain the concept of 'fiat money' with an example.

Explain the difference between 'monetary base' and 'money supply'.

Explain the difference between 'narrow money' and 'broad money'.

Explain the process of credit creation by commercial banks.

Explain the term 'credit multiplier'.

Explain the term 'monetary policy'.

Explain the term 'Open Market Operations'.

Which of the following is a liability for a commercial bank? (1) Loans given (2) Fixed deposits (3) Investments (4) Buildings

Which of the following is a primary function of commercial banks? (1) Issuing currency (2) Accepting deposits (3) Regulating monetary policy (4) Printing notes

Which of the following is a qualitative method of credit control? (1) Open Market Operations (2) Bank Rate (3) Selective Credit Control (4) Cash Reserve Ratio

Which of the following is a qualitative tool of monetary policy? (1) Repo rate (2) Selective credit control (3) SLR (4) CRR

Fill in the blank: The ________ is the apex institution in the Indian banking system.

Fill in the blank: The ________ is the minimum percentage of a bank's net demand and time liabilities that must be maintained in the form of liquid assets.

Fill in the blank: The ________ is the rate at which commercial banks borrow money from the RBI by selling their securities to the RBI with an agreement to repurchase them.

Fill in the blank: The ________ is the rate at which the central bank lends money to commercial banks.

True or False: Cooperative banks in India are regulated by both the RBI and the respective State Governments.

True or False: Demand deposits are included in the narrow definition of money supply (M1).

True or False: The Cash Reserve Ratio (CRR) is the percentage of total deposits that commercial banks must keep with the RBI.

True or False: The main objective of the RBI is to earn maximum profit.