Question

59. Assertion (A): Money kept with RBI is the part of money supply in India. Reason (R): RBI supply money in India. 60. Assertion (A): Money supply in India include demand deposits with commercial banks Reason (R): Demand deposits with commercial banks means fixed deposits. 61. Assertion (A): Money supply is the flow concept. Reason (R): Money supply refers to money available with people at a point of time. 62. Assertion (A): Credit creation is inversely related to legal reserve ratio. Reason (R): If more money is kept with banks themselves and with RBI, then lending capacity of banks decreases. Higher the nrimary denosits 67. Assertion (A): Money Multiplier refers to the process of creation of credit by the commercial Bank Reason(R): Money creation by commercial bank raises the National Income 68. Assertion (A): Commercial banks contribute to quantum of money supply in the economy through credit creation Reason (R): As they do have note-issuing authority 69. Assertion (A): The monetary policy is a policy formulated by the central bank. Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy. 70. Assertion (A): Repo rate is fixed by the Reserve bank of India, while reverse repo rate is fixed by the commercial banks​

Answer 1

Explanation:

59.a

60.c

61.d

62.a

63a

64c

65a

66a

67b

68a