Question : Which among the following statements is incorrect?

Option 1: An increase in the bank rate will decrease the money supply.

Option 2: The lower the Cash Reserve Ratio (CRR), the lower will be the liquidity in the system.

Option 3: The higher the Cash Reserve Ratio (CRR), the lower the liquidity in the system.

Option 4: The lower the Statutory Liquidity Ratio (SLR), the higher the liquidity in the system.

Question : The money supply is governed by the:

Option 1: Planning Commission

Option 2: Finance Commission

Option 3: Reserve Bank of India

Option 4: Commercial banks

Question : Currency notes and coins are called ______.

Option 1: near money

Option 2: commodity money

Option 3: fiduciary money

Option 4: fiat money

Question : Directions: Two statements are given followed by two conclusions numbered I and II. Assuming the statements to be true, even if they seem to be at variance with commonly known facts, decide which of the conclusions logically follow (s) from the statements.
Statements:
Some gold is silver.
All gold is platinum.
Conclusions:
I. Some silver is platinum.
II. All platinum is gold.

Option 1: Both conclusions I and II follow

Option 2: Only conclusion II follows

Option 3: Neither conclusion I nor II follows

Option 4: Only conclusion I follows

Question : What is the total stock of money in circulation among the public at a particular point in time called?

Option 1: Money order

Option 2: Money supply

Option 3: Short money

Option 4: Money laundering