Podcast
Questions and Answers
What is the main purpose of monetary policy?
What is the main purpose of monetary policy?
- To control private consumption expenditure
- To influence the level of aggregate demand for goods and services (correct)
- To regulate government expenditure
- To increase the level of private investment expenditure
How does monetary policy operate?
How does monetary policy operate?
- By varying the cost and availability of credit (correct)
- By increasing the level of government investment expenditure
- By controlling private consumption expenditure
- By regulating government expenditure
What forms the basis of most economic activities in a credit economy?
What forms the basis of most economic activities in a credit economy?
- Net exports
- Credit (correct)
- Government expenditure
- Private consumption expenditure
Which factor influences the level and nature of economic activities in a credit economy?
Which factor influences the level and nature of economic activities in a credit economy?
What does Gross National Product (GNP) equation represent?
What does Gross National Product (GNP) equation represent?
How do fiscal and monetary policies influence the economy?
How do fiscal and monetary policies influence the economy?
Which of the following is NOT a measure of money stock employed by the Reserve Bank of India?
Which of the following is NOT a measure of money stock employed by the Reserve Bank of India?
What are the components of M1, the measure of money stock designed by M1?
What are the components of M1, the measure of money stock designed by M1?
Which instrument of monetary policy involves the purchase or sale of government securities and treasuries to influence the money supply?
Which instrument of monetary policy involves the purchase or sale of government securities and treasuries to influence the money supply?
What happens to interest rates when the Reserve Bank of India sells government securities as part of open-market operations?
What happens to interest rates when the Reserve Bank of India sells government securities as part of open-market operations?
What is the percentage amount of reserves that need to be maintained with the RBI by commercial banks in cash called?
What is the percentage amount of reserves that need to be maintained with the RBI by commercial banks in cash called?
What is the lending of funds to commercial banks against securities by RBI called?
What is the lending of funds to commercial banks against securities by RBI called?
Which measure of money stock is usually referred to as aggregate monetary resources?
Which measure of money stock is usually referred to as aggregate monetary resources?
When the Reserve Bank of India decreases monetary base by selling government securities, what happens to the loanable funds of banks?
When the Reserve Bank of India decreases monetary base by selling government securities, what happens to the loanable funds of banks?
What does CRR raising lead to for banks in terms of lending?
What does CRR raising lead to for banks in terms of lending?
What does CRR lowering lead to for banks in terms of lending?
What does CRR lowering lead to for banks in terms of lending?
What is the primary determinant of banks' capacity to provide credit?
What is the primary determinant of banks' capacity to provide credit?
Which measure of money stock includes fixed deposits with the banks?
Which measure of money stock includes fixed deposits with the banks?
What is the main purpose of open market operations by the Reserve Bank of India?
What is the main purpose of open market operations by the Reserve Bank of India?
What happens to interest rates when the Reserve Bank of India sells government securities as part of open market operations?
What happens to interest rates when the Reserve Bank of India sells government securities as part of open market operations?
What does the cash reserve ratio (CRR) represent?
What does the cash reserve ratio (CRR) represent?
What does discount window lending by RBI involve?
What does discount window lending by RBI involve?
What is the impact on loanable funds of banks when RBI buys government securities?
What is the impact on loanable funds of banks when RBI buys government securities?
Which measure of money stock is usually referred to as aggregate monetary resources?
Which measure of money stock is usually referred to as aggregate monetary resources?
Flashcards are hidden until you start studying
