#monetary policy

Balance of Payments 1

Which of the following countries still follows fixed exchange rate system?

None of these BOP correct; tariff barrier makes imports costlier restricts trade.

Ref: NCERT Economics Class XII Chapter 6 Balance of Payments explains BOP current capital account tariff quota exchange rate IMF concepts.

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Balance of Payments 1

When the exchange rate of a domestic currency is cut down by its government against any foreign currency is called

Devaluation BOP correct; tariff barrier makes imports costlier restricts trade.

Ref: NCERT Economics Class XII Chapter 6 Balance of Payments explains BOP current capital account tariff quota exchange rate IMF concepts.

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Money and Banking 3

When Cash Reserve Ratio is 20% then with the deposit of Rs. 1000, Money creation will be Rs. 5000, Money multiplier is:

5 money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Increase in the value of domestic commodities in terms of foreign currency is known as

Either (a) or (c) money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Directions For Questions Read the following case study and answer the question The Central Bank of India i.e. Reserve Ba

Commercial Bank money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

The volume and direction of money supply in the economy is controlled by ________

Central Bank money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Who regulates money supply?

Reserve Bank of India money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Central Bank prints currency in the country.

False money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Dear money policy of central bank, which is used to keep the growth steady and in-line with other economic factors, refe

Tighten the money supply in the money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 2

Value of Money Multiplier ______ with an increase in Cash Reserve Ratio.

Decrease money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 1

Loans offered by commercial banks .......... the m oney supply in the economy.

Increase money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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Money and Banking 1

In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflati

Release money banking correct; RBI controls money supply, fiat money legal tender.

Ref: NCERT Economics Class XII Chapter 3 Money and Banking explains money functions RBI commercial banks money supply monetary policy clearly.

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