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प्रश्न
What are the determinants of money supply?
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उत्तर
Determinants of Money Supply:
- Currency Deposit Ratio (CDR); It is the ratio of money held by the public in currency to that they hold in bank deposits.
- Reserve deposit ratio (RDR); Reserve Money consists of two things (a) vault cash in banks and (b) deposits of commercial banks with RBI.
- Cash Reserve Ratio (CRR); is the fraction of the deposits the banks must keep with RBI. (z’v) Statutory Liquidity Ratio (SLR); It is the fraction of the total demand and time deposits of the commercial banks in the form of specified liquid assets.
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संबंधित प्रश्न
State the meaning and components of the money supply.
What are the alternative definitions of money supply in India?
Answer the following question.
State any two components of the M1 measure of the money supply.
The RBI Headquarters is located in ______.
The basic distinction between M1 and M2 is with regard to.
MV stands for the ______.
What is money supply?
One of the measures of the money supply is ______.
Cash balance approach in Quantity theory emphasis on ______.
Money supply in India may increase if, ______
- Reserve Bank of India (RBI) injects more money in circulation.
- The commercial banks expand their credit operation.
- Tax rates are reduced by the Central Government.
- Reserve Bank of India increases the Bank Rate.
Read the following statements carefully:
Statement 1: Money supply (M1) in India does not include ‘demand deposits’ with commercial banks.
Statement 2: Money supply (M1) refers to, assets available with the Commercial Banks during a particular period of time.
In the light of the given statements, choose the correct alternative.
