NCERT_CLASS_12_ECONOMICS_MACROECONOMICS

1. Which of the following measures would result in an increase in the money supply in the economy?  

1.Purchase of government securities from the public by the Central Bank

2.Deposit of currency in commercial banks by the public

3.Borrowing by the government from the Central Bank

4.Sale of government securities to the public by the Central Bank

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2. consider the following statement .

1. Statement : (A) In a vast economy, barter deals become
   incredibly complex.
2. Reason : (R)  Transactions have become more easier
   when it comes to tangible money.

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3. consider the following statement .

1. Statement : (A) People grow less interested in holding
   money when interest rates rise.
2. Reason : (R)  Holding money equates to a reduction
   in the amount of interest-earning deposits held.

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4. with reference to the functions of Central bank of india
consider the following  statement?

1. It is in charge of India's foreign exchange reserves.
2. It issues and destroys unfit-for-circulation cash.
3. It keeps track of all scheduled banks' accounts.

Choose the incorrect answer

5. Take a look at the following remark about commercial banks.

1. It was created only for business purposes, not for the
   purpose of making money.
2. They take deposits from the general population.

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6. Consider the following statement with reference to the balance sheet.

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7. which term /terms is are part of assets of
balance sheet in firm ?

1. any liquid assets
2. bills
3. bank dept
4. Long term debt

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8. Think about the following statement:

1. If assets exceed liabilities, they are reported as
   Net Worth on the right hand side.
2. In a bank's balance sheet, the total quantity of
   assets and liabilities should always be equal.

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9. Take a look at the following statement on the
Cash Reserve Ratio.

1. An increase in the Cash Reserve Ratio leads
   to an increase in the economy's money supply, and vice versa.
2. The higher the CRR, the greater the bank's
   liquidity.

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10. Which of the following Quantitative   tools used
by the Central bank to control money supply ?

1. Cash Reserve Ratio
2. bank rate
3. open market operations.
4. Margin requirement.

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11. with reference to the correct explanation of Open
Market Operations consider the following  statement

12. What effect will it have on the economy? When the RBI
purchases a government bond on the open market with a check.
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13. Take a look at the following statement about Outright
in the economy.

1. The central bank is responsible for guaranteeing
   the purchase and sale of these securities.
2. The nature of outright open market activity is
   permanent.
3. It is an example of an open market operation.

Select the correct response.

14. Take a look at the following remark about a repurchase
agreement.

1. A repurchase agreement is a type of short-term financing
   for government securities dealers.
2. The Reserve Bank of India undertakes repurchase agreement
   operations with maturities ranging from overnight to seven days to fourteen days.
3. It is one of the Reserve Bank of India's primary monetary
   policy tools.

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15. Consider the following statement on the impact of a
rise in the bank rate on commercial banks and the money
supply.

16. match the following

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