Question : The reserve held by Commercial Banks over and above the statutory minimum with the RBI are called:

Option 1: Cash reserve

Option 2: Deposits reserves

Option 3: excess reserves

Option 4: momentary reserves

Question : Commercial banks can create money by: 

Option 1: Printing currency notes and coins 

Option 2: Lending out the deposits they receive 

Option 3: Receiving deposits from customers

Option 4: All of the above

Question : ________ is the currency in the hands of the public plus commercial bank reserves, also called ‘high-powered money’.

Option 1: Desired reserve ratio

Option 2: Excess reserves

Option 3: Monetary base

Option 4: Money multiplier

Question : Regarding the money supply situation in India in 2014-15, it can be said that the:

Option 1: Currency with the public is inconvertible only

Option 2: Currency with the public is less than the deposits with the banks

Option 3: Currency with the public is more than the deposits with the banks

Option 4: Currency with the public is almost equal to the deposits with the banks

Question : The ratio of cash reserves to demand and time deposits of commercial banks is known as ___________.

Option 1: Cash reserve ratio (CRR)

Option 2: Statutory liquidity ratio (SLR)

Option 3: Repo rate

Option 4: Reverse repo rate