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Question
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
| B. | Money multiplier | (ii) | The difference between market value of the security and the amount of loan. |
| C. | Total money creation | (iii) | Acceptance of deposits |
| D. | Margin requirement | (iv) | `1/"LRR"` |
Options
A. (i), B. (iii), C. (iv), D. (ii)
A. (iii), B. (iv), C. (i), D. (ii)
A. (ii), B. (i), C. (iv), D. (iii)
A. (iv), B. (ii), C. (i), D. (iii)
MCQ
Match the Columns
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Solution
A. (iii), B. (iv), C. (i), D. (ii)
Explanation:
| Column I | Column II | ||
| A. | Function of Commercial bank | (iii) | Acceptance of deposits |
| B. | Money multiplier | (iv) | `1/"LRR"` |
| C. | Total money creation | (i) | Initial deposits × `1/"LRR"` |
| D. | Margin requirement | (ii) | The difference between market value of the security and the amount of loan. |
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