MONEY AND BANKING IMPORTANT QUESTIONS
HOTS
- Government of India has launched “Jan Dhan Yojna” that aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan going to affect the national income of the country?
- Currency is issued by the Central Bank, yet we say that Commercial Banks create money. Explain.
- How is this money creation by Commercial Banks likely to affect the National Income? Explain.
- If CRR is lowered, investment demand must rise. Defend or refute.
- How should the central bank use credit control to encourage the growth of business activities in an economy?
- “Rate cut to promote growth: RBI does not agree.”
A) Give on argument in favour of rate cut?
B) Why RBI is not in favour of rate cut?
7. Complete the last column of given table:
| Column 1 | Column 2 | Column 3 | Column 4 |
| Round | Deposit in Bank | Required Reserve | Loan made by Bank |
| 1 | 100.00 | 20.00 | 80.00 |
| 2 | 180.00 | 36.00 | 64.00 |
| – | – | – | – |
| – | – | – | – |
| – | – | – | – |
| – | – | – | – |
| – | – | – | – |
| – | – | – | – |