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Sanskartirth Gyanpeeth

ch 5 sst

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20 views

Sanskartirth Gyanpeeth

ch 5 sst

Uploaded by

Hardik Hisoriya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SANSKARTIRTH GYANPEETH

CLASS TEST (2024-2025)

SUBJECT: - Economics (030) GRADE: - XII com


DATE: - 12 -07-2024 Max. Marks: - 30
Name: - ________________________________________________ Time Allowed: - 50 min.

1. Money supply refers to: (1)


(a) Total volume of money held by public at a particular point of time
(b) Total volume of money held by public over a period of time
(c) Total volume of money held by the government
(d) Both (a) and (b)

2. Statutory liquidity ratio implies to that percentage of (1)


(a) Total deposits of the commercial banks which must be kept in the current account, with the
reserve Bank of India
(b) Total deposits of the commercial banks which must be kept in the form of liquid assets, with the
Reserve Bank of India
(c) Net time and demand deposit liabilities of the commercial banks which must be kept in the form
of cash, with the Reserve Bank of India
(d) Net time and demand deposit liabilities of the commercial bank which must be kept with
themselves in the form of liquid assets

3. If the total deposits created by commercial banks is 10,000 crores and legal reserve requirements is
40%, then amount of initial deposits will be. (1)
(a) ₹2,000 crores
(b) ₹3,000 crores
(c) ₹4,000 crores
(d) 14,000 crores

4. Which of the following will increase the money supply? (1)


(a) Fall in repo rate
(b) Purchase of securities in open market
(c) Decrease in cash reserve ratio
(d) All of these

5. Three friends Sunil, Rakesh and Komal were discussing the role of Commercial Banks and Central
Bank in controlling the credit. (1)
 Sunil said that Commercial Bank is the controller of credit.
 Rakesh said that the Central Bank is the controller of credit.
 Komal said that both the Commercial Bank and the Central Bank are the controller of credit.
Who among them are correct?
(a) Sunil
(b) Rakesh
(c) Komal
(d) All of these

6. Identify the function of money highlighted in the given statement. (3)


(i) This function has led to capital formation and economic development of the economy.
(ii) This function has separated the acts of sale and purchase.
(iii) This function of money facilitates transfer of purchasing power from present to future.
7. Calculate the value of money multiplier and total deposit created if initial deposit is of 500 crores
and LRR is 10%. (3)

8. Government of India has recently launched 'Jan-Dhan Yojna'aimed at every household in the country
to have at least one bank account. Explain how deposits made under the plan are going to affect
national income of the country (3)

9. If total deposit created by commercial banks is 20,000 crores and the primary deposit is 2,500 crores,
what is the value of money multiplier and reserve ratio? (3)

10. Define Credit Multiplier. What role does it play in determining the credit creation power of the
banking system? Use a numerical illustration to explain. (4)

11. What is repo rate policy? How does it work as method of credit control? (4)

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