All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Indian Financial System  >  Test: Introduction to Indian Financial System-2 - B Com MCQ

Test: Introduction to Indian Financial System-2 - B Com MCQ


Test Description

10 Questions MCQ Test Indian Financial System - Test: Introduction to Indian Financial System-2

Test: Introduction to Indian Financial System-2 for B Com 2024 is part of Indian Financial System preparation. The Test: Introduction to Indian Financial System-2 questions and answers have been prepared according to the B Com exam syllabus.The Test: Introduction to Indian Financial System-2 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction to Indian Financial System-2 below.
Solutions of Test: Introduction to Indian Financial System-2 questions in English are available as part of our Indian Financial System for B Com & Test: Introduction to Indian Financial System-2 solutions in Hindi for Indian Financial System course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Introduction to Indian Financial System-2 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Indian Financial System for B Com Exam | Download free PDF with solutions
Test: Introduction to Indian Financial System-2 - Question 1
Save

What is the term for the total sum of money available to the public in an economy at a specific point in time?

Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 1
Money supply refers to the total stock of monetary media of exchange available for use by the public in an economy at a specific time. It encompasses both currency and demand deposits.
Test: Introduction to Indian Financial System-2 - Question 2
Save

What is the primary function of money supply in an economy?

Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 2
Money supply serves as a crucial factor for achieving balanced economic growth by facilitating transactions, investments, and overall economic activities. It helps in maintaining stability and preventing both inflation and deflation.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Introduction to Indian Financial System-2 - Question 3
Save

Which component of money supply represents the total amount of currency notes in circulation issued by the central bank?

Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 3
Currency with the public includes currency notes in circulation issued by the central bank, along with other forms of money in the hands of the public.
Test: Introduction to Indian Financial System-2 - Question 4
Save
What is the primary reason for distinguishing various measures of money supply based on their functions?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 4
Distinguishing measures of money supply based on their functions helps in predicting the effects of changes in different components on the economy, aiding in effective monetary policy decisions.
Test: Introduction to Indian Financial System-2 - Question 5
Save
What is the term used to describe the degree to which money supply expands in response to an increase in high-powered money?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 5
The money multiplier is the measure of how much the money supply expands for a given increase in high-powered money. It depends on the cash reserve ratio of banks and the currency-deposit ratio of the public.
Test: Introduction to Indian Financial System-2 - Question 6
Save
Which concept of money supply includes savings deposits with the post office savings banks?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 6
Money Supply M2 includes savings deposits with the post office savings banks, in addition to the components of Money Supply M1.
Test: Introduction to Indian Financial System-2 - Question 7
Save
What role does the high-powered money (H) play in determining money supply?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 7
High-powered money (H) influences the total money supply indirectly through its relationship with the money multiplier and the cash reserve ratio.
Test: Introduction to Indian Financial System-2 - Question 8
Save
How does the drainage of currency to the public during the deposit creation process affect the money multiplier?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 8
The drainage of currency from banks to the public during the deposit creation process reduces the value of the money multiplier, as it decreases the extent of expansion in demand deposits.
Test: Introduction to Indian Financial System-2 - Question 9
Save
What is the main determinant of the deposit multiplier?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 9
The cash reserve ratio (r) of banks determines the magnitude of the deposit multiplier, which indicates how much total deposits expand for a given increase in cash reserves.
*Multiple options can be correct
Test: Introduction to Indian Financial System-2 - Question 10
Save

What determines the size of the money multiplier in an economy?
Detailed Solution for Test: Introduction to Indian Financial System-2 - Question 10

The size of the money multiplier is determined by both the cash reserve ratio (r) of banks and the currency-deposit ratio (k) of the public. It reflects how much total money supply expands for a given increase in high-powered money.

39 videos|39 docs|14 tests
Join Course
Information about Test: Introduction to Indian Financial System-2 Page
In this test you can find the Exam questions for Test: Introduction to Indian Financial System-2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Introduction to Indian Financial System-2, EduRev gives you an ample number of Online tests for practice
39 videos|39 docs|14 tests
Join Course
Download as PDF

Important Questions for Introduction to Indian Financial System-2

Find all the important questions for Introduction to Indian Financial System-2 at EduRev.Get fully prepared for Introduction to Indian Financial System-2 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Introduction to Indian Financial System-2 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Introduction to Indian Financial System-2 resources.

Introduction to Indian Financial System-2 MCQs with Answers

Prepare for the Introduction to Indian Financial System-2 within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Introduction to Indian Financial System-2 Indian Financial System

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Introduction to Indian Financial System-2 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup