(A) Inflation
(B) Increase in real income
(C) Increase in real rate of interest
(D) Increase in wealth
Tag: Economics Mcqs With Answers
If someone keeps some money for bad days, this demand for money is known by __motive of money?
(A) Speculative
(B) Transaction
(C) Precautionary
(D) Store
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