MONEY AND BANKING TEST
TEST 1
1.What are demand deposits?
2.Who control credits?
(a) Commercial Banks (b) Central Bank
(c) Both (a) and (b) (d) Neither (a) nor (b)
3. Who supplies money? Explain
4.What is the difference between demand deposits and time deposits?
5.Define margin requirement. Why is it necessary?
6.Explain the role of reverse repo rate in controlling money supply?
7.Explain the process of money creation by the commercial bank with the help of a numerical example?
8.Explain any two function of central bank?