IBPS Clerk Money, Banking and Credit — practice questions
37 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice IBPS Clerk Money, Banking and Credit in the app →Modern money is accepted as a medium of exchange primarily because:The 'double coincidence of wants' is a problem associated with:Three primary functions of money are:In India, the authority to issue currency notes (except ₹1) is vested with:M3 (broad money) includes M1 plus:In rural India, the LARGEST source of credit for the poor traditionally has been:Money multiplier in an economy is given by:Inflation targeting framework adopted by RBI requires the Monetary Policy Committee to keep CPI inflation withIn demonetization (Nov 2016), which currency notes were made invalid?The major bank merger of August 2019 reduced number of PSBs from 21 to:Public sector banks (PSBs) are banks where:NABARD stands for:Of these, which is NOT an example of credit?In which year did India get its central bank, the Reserve Bank of India?Which function of money removes the need for a double coincidence of wants in trade?The Cash Reserve Ratio is the percentage of a bank's deposits that it must hold asThe RBI is described as the 'lender of last resort' because itWhich of these is a function of the Reserve Bank of India?Currency issued by the central bank, held by the public or by banks, is known asA commercial bank's 'spread' is the difference between the interest itWhich requirement obliges a bank to hold reserves in liquid form in the short term?When the RBI buys government bonds in the open market, the money supplyThe rate at which the RBI lends money through a repurchase agreement is theUnder a reverse repurchase agreement, the RBI is effectivelyAn increase in the bank rate affects the money supply by makingWhich of these is a quantitative tool of monetary control?As interest rates rise, the quantity of money people wish to holdA general rise in the price level means the purchasing power of money hasJan Dhan accounts and Aadhaar-enabled payment systems are steps towardsWith a CRR of 20 per cent and an initial deposit of Rs 100, how much can the bank lend in the first round?If the RBI raises the reserve ratio from 20 per cent to 25 per cent, the deposits that Rs 100 of reserves can How does an outright open market operation differ from a repo?The banking system can create credit primarily because depositorsIn the RBI's measures of money supply, M1 is defined asWhich pair of monetary aggregates is classified as broad money?Which measure of money supply is the one most commonly used?Income of Rs 100 arrives on day one and is spent evenly through the month. The average transaction demand for