(A) Speculative
(B) Transaction
(C) Precautionary
(D) Store
Category: Economics Mcqs
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Which of these affects the demand for money?
(A) Real income
(B) Price level
(C) Rate of interest
(D) All the three
How does a commercial bank create money?
(A) By printing money
(B) By lending a part of its deposits
(C) By issuing ATM cards
(D) Accepting deposits
Manipulation in CRR enables the RBI to __?
(A) Influence the lending ability of the commercial banks
(B) Check unemployment growth;
(C) Check poverty
(D) Increase GDP
If RBI sucks excess money into circulation this will effect?
(A) M2
(B) M2
(C) Both
(D) None
If the country is passing through recession, the RBI would?
(A) Buy bonds
(B) Reduce CRR
(C) Ease out bank rate
(D) All or any of the above three
If RBI wants to decrease the money supply in order to check inflation it will?
(A) Sell bonds
(B) Increase CRR
(C) Hike bank rate
(D) All or any of the above three
Which of the following function does money serve when used to purchase or sell different goods and services?
(A) Store of value
(B) Medium of exchange
(C) Standard of value
(D) Display of power