Class XII

M1 includes
  1. Term deposits
  2. Currency and coins
  3. Term deposits in RBI
  4. Post Office savings deposits
One of the various quantitative instruments used by the central bank in during inflation is
  1. Raise Bank rate
  2. Reduce bank rate
  3. Fix bank rate
  4. Introduce bank rate
Bank rate is for
  1. Central bank by the commercial banks
  2. Central banks by the central bank
  3. Commercial banks by the central bank
  4. Commercial banks by the government
Selling government securities by the central bank in India during excess demand will be
  1. Inflationary
  2. Destabilisation
  3. Destabilisation
  4. Stabilisation
If total deposits created by commercial banks are Rs.12000, LRR is 25%% calculate initial deposit.
  1. Rs. 84000
  2. Rs. 48000
  3. Rs. 50000
  4. Rs. 40000
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