Description : 2. Which of the following is a component of M-1? a. savings deposits b. credit card c. checkable deposits d. gold
Last Answer : c. checkable deposits
Description : 3. Which of the following is a NOT component of M-2? a. small time deposits b. money market mutual funds c. stocks d. checkable deposits
Last Answer : c. stocks
Description : What is "narrow money"? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with the ... reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters
Last Answer : (1) The sum of currency in circulation and the demand deposits in banks Explanation: The four main monetary aggregates of measures of money supply which reflect the state of the monetary sector ... This category of money is considered to be the most readily available for transactions and commerce.
Description : What is narrow money ? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with ... reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters
Last Answer : The sum of currency in circulation and the demand deposits in banks
Description : According to monetary approach of Balance of Payments, the demand for money is a stable function of (a) income, prices and rate of interest (b) income and prices (c) prices and rate of interest (d) income, prices and foreign exchange reserves
Last Answer : income, prices and rate of interest
Description : What is the reserve deposit ration (rdr)? a) the proportion of money RBI lends to commercial banks b) the proportion of total deposits commercial banks keep as reserves c) the total proportion of money that commercial banks lend to the customers d) none of the above
Last Answer : b) the proportion of total deposits commercial banks keep as reserves
Description : Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) ... the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.
Last Answer : (2) Currency with the public is less than the deposits with the banks. Explanation: Money supply in India includes the following: (i) Currency with the public: (ii) Demand deposits and time ... to total supply of money has been increasing with reciprocal diminution in currency held by the public.
Last Answer : Currency with the public is less than the deposits with the banks.
Description : What if we knew for certain major gold deposits were on the moon, and the only obstacle was shipping costs?
Last Answer : We’d need a Fed Ex rocket and I’m not sure that mining the old fashioned way with burros to pack out the motherlode would be effective. Science would need to genetically alter donkeys and create an anti-gravity ass. lol
Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.
Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : Non-monetary gold movements
Description : What is the currency deposit ratio (cdr)? a) ratio of money held by the public in currency to that of money held in bank deposits b) ratio of money held by public in bank deposits to that of money ... ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above
Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits
Description : The deposits of copper, gold and silver have been discovered at _____. A. Dakhni B. Saindak C. Dadhak D. Aghari
Last Answer : ANSWER: B
Description : Since 2008, the Fed has tripled the monetary base: why is there so little inflation?
Last Answer : answer:Because the value of shit has tripled as well during that time. Currency equal value of stuff. = No inflation. If more currency than stuff, then we get inflation. If less currency than stuff ... is equal to the perceived value of goods and service in an economy, there should be no inflation.
Description : 8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000
Last Answer : d. $10,000
Description : In monetary terminology, what is called the 'monetary base' or 'high powered money'? a) the total assets of RBI b) the total liability of RBI c) the total debt of the government d) the total foreign exchange of RBI
Last Answer : b) the total liability of RBI This includes the currency (notes and coins in circulation and vault cash of commercial banks) along with the deposits held by the Government of India ad commercial banks with RBI.
Description : Which exchange-rate system does not require monetary reserves for official exchange rate intervention? A. Floating exchange rates B. Pegged exchange rates C. Managed floating exchange rates D. Dual exchange rates
Last Answer : A. Floating exchange rates
Description : Diamond is a very expensive ornament. It is composed of a single element ------? A. Carbon (Answer) B. Gold C. Silver D. Platinum E. None of these
Last Answer : A. Carbon (Answer)
Description : Which of the following is a currency established as money by government regulation or law but it is not backed by any commodity, such as gold, silver etc., but only by the faith of the bearer? A. Commodity Money B. Representative Money C. Fiat Money D. fiduciary currency E. None of the Above
Last Answer : C. Fiat Money Explanation: Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity.
Description : Small nations (e.g., Tanzania) with more than one major trading partner tend to peg the value of their currencies to: A. Gold B. Silver C. A single currency D. A basket of currencies
Last Answer : D. A basket of currencies
Description : Deposits under Foreign Currency Non-Resident(FCNR) scheme can be accepted for a minimum of _______ A. 15 days B. 3 months C. 6 months D. 1 year E. 7 days
Last Answer : D. 1 year Explanation: Term Deposit with maturity of minimum 1 year & maximum 5 years can be opened under Foreign Currency Non-Resident(FCNR) scheme.
Description : Other than the gold standard what non fiat currency is a good investment?
Last Answer : It sounds like you are asking what good barter items might be. It would have to be something that lasts a long time or something that can be created continuously, something physical, and something that ... system is kicking in, growing your own and trading it for things you need is a win-win.
Description : Foreign currency which has a tendency of quick migration is called - (1) Scarce currency (2) Soft currency (3) Gold currency (4) Hot currency
Last Answer : (4) Hot currency Explanation: Hot money or currency is a term that is most commonly used in financial markets to refer to the now of funds (or capital) from one country to another in ... money" because they can move very quickly in and out of markets, potentially leading to market instability.
Description : Bank money refers to - (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : (4) cheques Explanation: There are two types of money in a fractional-reserve banking system, currency originally issued by the central bank, and hank deposits at commercial banks: (1) ... created in the banking system through borrowing and lending) - sometimes referred to as chequebook money.
Description : Bank money refers to (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : cheques
Description : Foreign currency which has a tendency of quick migration is called (1) Scarce currency (2) Soft currency (3) Gold currency (4) Hot currency
Last Answer : Hot currency
Description : A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks
Last Answer : (1) Cash in the vault Explanation: A commercial bank is a profitseeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of ... received as the deposits to needy people. So it creates credit from the cash deposits with it.
Description : A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks
Last Answer : Cash in the vault
Description : Which of the following constitutes Foreign Direct Investment? A. A speculator trying to make a profit by buying company shares on a foreign stock exchange. B. A UK energy company buying territory ... D. A company signing an agreement with a wholesaler to distribute its products in foreign markets.
Last Answer : A tourist purchasing foreign currency to spend on a holiday abroad.
Description : Which of the following terms refers to chest pain brought on by physical or emotional stress and relieved by rest or medication? a) angina pectoris Angina pectoris is a symptom of myocardial ischemia. ... d) ischemia Ischemia is insufficient tissue oxygenation and may occur in any part of the body.
Last Answer : a) angina pectoris Angina pectoris is a symptom of myocardial ischemia.
Description : What is the currency of 'European Economic and Monetary Union area' ? -General Knowledge
Last Answer : The currency of 'European Economic and Monetary Union area' is called Euro
Description : The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the __________ (a) Average Rate (b) Closing Rate (c) Non-monetary Rate (d) Monetary Rate
Last Answer : Closing
Description : Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the ___________ (a) Balance Sheet (b) Transaction (c) Settlement (d) None of the above
Last Answer : b) Transaction
Description : Non-monetary items in foreign currency shall be converted into reporting currency by using which exchange rate? a. closing rate b. average rate c. actual rate effective on date d. all the above
Last Answer : c. actual rate effective on date
Description : Rather than constructing their own currency baskets, many nations peg the value of their currencies to a currency basket defined by the International Monetary Fund. Which of the following illustrates this ... . IMF tranche B. Special Drawing Rights C. Primary reserve asset D. Swap facility
Last Answer : B. Special Drawing Right
Description : If Fort Knox's gold reserves were fully audited today what would they conclude?
Last Answer : That they should give some away to ME!
Last Answer : : The United States has the largest gold reserves
Description : CAGE framework measures the match between countries and companies according to dimensions of distance. G stands for..? A. Government B. Gold Reserves C. Geography D. Goods & Services
Last Answer : Geography
Description : The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called - (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves
Last Answer : (3) Excess reserves Explanation: In banking, excess reserves are bank reserves in excess of the reserve requirement set by a central bank. They are reserves of cash more than the required ... is that doing so may provide enhanced liquidity and therefore more smooth operation of payment system.
Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral
Last Answer : c. reserves
Description : Assume that the required ratio is 10 percent and bank receives $1,000 deposit. What is the excess reserves ? (a) $100 (b) $9,000 (c) $900 (d) $10,000
Last Answer : (c) $900
Description : The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves
Last Answer : Excess reserves
Description : Should the United States return to a Gold Standard monetary system?
Last Answer : Only if we want to destroy our economy and perhaps send the world into depression.
Description : The Bretton Woods Agreement of 1944 established a monetary system based on A. Gold and managed floating exchange rates B. Gold and adjustable pegged exchange rates C. Special Drawing Rights and managed floating exchange rates D. Special Drawing Rights and adjustable pegged exchange rates
Last Answer : B. Gold and adjustable pegged exchange rates
Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy
Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy
Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.
Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy
Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.
Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy
Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.