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Banks create credit :...

Banks create credit :

A

Out of nothing

B

On the basis of their securities

C

On the basis of their total assest

D

On the basis of deposits

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Verified by Experts

The correct Answer is:
d
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SANDEEP GARG-BANKING : COMMERCIAL BANKS AND THE CENTRAL BANK-MULTIPLE CHOICE QUESTIONS(MCQS)
  1. What will be the effect of increase in the 'Repo Rate' on the mone...

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  2. The ratio of total deposits that a commercial bank has to keep wit...

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  3. Banks create credit :

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  4. If the total deposits created by commercial banks is ₹ 1000 crores an...

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  5. Which of the following will increase the money supply ?

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  6. What is the other name for 'Money Multiphlier ?

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  7. In order to reduces credit in the country ,RBI may:

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  8. The one rupee note and coins are issued by :

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  9. Which of these is not a function of central bank ?

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  10. Other name for legal reserve requirement is

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  11. Which of the following is not the function of the Central Bank ? (Ch...

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  12. refer to those deposits in which amount is deposited with bank for...

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  13. Which of the following instrument cannot be used by Central Bank to...

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  14. Which bank controls the banking and monatry structure of India ?

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  15. What is the value of money multiplier when initial deposits ₹500c...

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  16. What happen where there is an increase in the margine reuirements ?

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  17. Which institution (s) perforem the activity of credit creation ?

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  18. Which of these conditions is needed for a financial instituti...

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  19. refer to that portion of total deposite of a commericial bank wh...

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  20. Which of the following agency is responsible for issuing ₹ 1 cur...

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