Please select a subject first
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Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Credit Creation comes to an end when total cash reserves become equal to the initial deposits.
Reason (R): The value of money multiplier is determined by Legal Reserve Ratio (LRR).
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Match the following:
| Column I | Column II | ||
| A. | Formula of Money Multiplier | (i) | Inverse |
| B. | Money multiplier = 4 | (ii) | Money multiplier = 10 |
| C. | Relationship between LRR and money multiplier | (iii) | LRR = 0.25 |
| D. | LRR = 0.1 | (iv) | `1/"LRR"` |
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What is meant by credit creation?
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State the advantage of a credit card over currency notes.
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Explain briefly the process of credit creation by commercial banks.
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What is meant by primary deposits?
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What are secondary (derivative) deposits?
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What is money multiplier?
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How money multiplier is related to Legal Reserve Ratio?
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Why are the banks required to keep only a fraction of deposits as cash reserves?
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Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
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The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by ______.
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What is the implication of a vertical demand curve?
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The price of Y falls from ₹ 8 to ₹ 6. The quantity demanded increases from 100 units to 125 units. The price electricity of demand will be ______.
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When the price elasticity of demand for a good equals ______.
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Which of the following is the most likely reason for the relatively high elasticity of bottled water?
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Assertion (A): The demand for soap, salt, matches etc. is highly elastic.
Reason (R): The demand for soap, salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.
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Assertion (A): Demand for a commodity with large number of substitutes with be less elastic.
Reason (R): With large number of substitutes, even a small rise in its price will induce the buyers to go for its substitutes.
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The nature of a commodity determines its price elasticity of demand. Explain.
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How does the availability of substitutes of a commodity affect its price elasticity of demand?
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