Money and Banking in India
Economics ⇒ Indian Economy
Money and Banking in India starts at 11 and continues till grade 12.
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Define the term 'fiat money'.
Explain the concept of 'credit multiplier' in banking.
Explain the difference between 'money supply' and 'money creation'.
Explain the difference between narrow money (M1) and broad money (M3) in India.
Explain the term 'monetary policy'.
Explain the term 'Open Market Operations'.
Explain the term 'Statutory Liquidity Ratio' (SLR).
What is the difference between demand deposits and time deposits?
Which institution is responsible for issuing currency notes in India (except one rupee notes)? (1) Ministry of Finance (2) Reserve Bank of India (3) State Bank of India (4) Indian Overseas Bank
Which of the following is a liability for a commercial bank? (1) Loans given to customers (2) Deposits from customers (3) Investments in government securities (4) Cash in hand
Which of the following is a primary function of commercial banks? (1) Accepting deposits (2) Issuing currency (3) Regulating monetary policy (4) Printing money
Which of the following is a qualitative instrument of monetary policy? (1) Open Market Operations (2) Bank Rate (3) Moral Suasion (4) Cash Reserve Ratio
Fill in the blank: The ________ is the apex institution of the Indian banking system.
Fill in the blank: The ________ is the difference between a bank’s assets and its liabilities.
Fill in the blank: The ________ is the rate at which commercial banks borrow money from the Reserve Bank of India against government securities.
Money is said to be ________ when it can be easily accepted in exchange for goods and services.
True or False: Cheques are considered as legal tender money in India.
True or False: Commercial banks in India can create credit through the process of accepting deposits and lending.
True or False: Money supply in an economy includes only currency notes and coins.
True or False: The Reserve Bank of India acts as a lender of last resort to commercial banks.
