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Money And Banking

Question

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The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called : (choose the correct alternative)
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) Legal reserve ratio

Solution

(c) Cash reserve ratio

Some More Questions From Money And Banking Chapter

What is a barter system? What are its drawbacks?
Or
What is barter (barter exchange)? State inconveniences (problems) of barter exchange. Explain any one problem of barter system.

What are the main functions of money? How does money overcome the shortcomings of a barter system?
Or
(a) Define money.
(b) Describe its functions. What is its main function?
or
Briefly explain any two/four functions of money.
or
Explain ‘medium of exchange’ function of money.
or
Explain the ‘unit of account/measure of value’ function.
or
Explain ‘standard of deferred payment function’ of money.
or
Explain the store of value function of money.
or
How has money solved the problems of barter?
or
Describe importance of money in a modern economy.

What is a ‘legal tender’? What is ‘fiat money’?

Distinguish between limited legal tender and unlimited legal tender.

Give functional definition of money.

Give narrow definition and broad definition of money.

Write short notes on the following:
Standard and Token coins.

Write short notes on the following:
Credit money

What is High Powered Money?
or
Write short notes on the following:
High powered money.

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