List of top Economics Questions on Money and Banking asked in CUET (PG)

Arrange the following components of monetary aggregates in descending order as per their liquidity:

(A) currency notes
(B) demand deposits
(C) time deposits
(D) money market mutual fund
Choose the correct answer from the options given below:

Which of the following statements are correct about the money multiplier? (A) It is the ratio of the stock of money to the stock of high powered money.
(B) It is always smaller than one.
(C) Its value depends on the reserve ratio and currency-deposit ratio.
(D) It is inversely related to the reserve ratio.
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In the Keynesian framework, determination of an equilibrium interest rate also implies

(A) The rate that equates the supply of and the demand for bonds.
(B) The rate that equates the supply of money with the demand for money.
(C) The rate that equates the supply of money and demand for investment.
(D) The rate that equates supply of labour and demand for labour.
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Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Measures of Money Supply} & \textbf{Components} \\ \hline \text{(A) M3} & \text{(I) Currency held by the public (C) + net demand deposits of banks (DD) + other deposits of the RBI (OD)} \\ \hline \text{(B) M2} & \text{(II) C + DD + OD + net time deposits of banks} \\ \hline \text{(C) M1} & \text{(III) C + DD + OD + saving deposits with post office saving banks} \\ \hline \text{(D) M4} & \text{(IV) C + DD + OD + net time deposits of banks + total deposits with post office savings organization (excluding National Saving Certificates)} \\ \hline \end{array}\] Choose the correct answer from the options given below: