Money Market
20 Practice MCQs available for CA Foundation
Paper
Paper 4: Business Economics
Exam Weightage
10%
Key Topics
Money Demand/Supply, Monetary Policy
This chapter covers the monetary system — how money circulates in the economy. Topics include Demand for Money, Supply of Money, Monetary Policy instruments (Repo Rate, CRR, SLR, Open Market Operations), and the role of the Reserve Bank of India in controlling inflation and managing the economy.
Exam Strategy Tip
Memorize the RBI's monetary policy instruments and their impacts. Questions often ask about the effect of changing CRR or Repo Rate on money supply.
Key Terms
Comparison Tables
All 20 Questions
Call money market deals in funds for:
Which is NOT a function of RBI?
Repo Rate is the rate at which:
Treasury bills are issued by:
Money supply M1 includes:
CRR stands for:
Which of the following is a quantitative credit control measure?
Money multiplier depends on:
High powered money consists of:
$Reverse Repo Rate is _____ than Repo Rate.$
Narrow Money refers to:
Commercial Paper is:
Certificate of Deposit is issued by:
Inflation targeting is the primary objective of:
Which is known as Broad Money?
SLR stands for:
Demonetization in India took place in:
Which of the following is not a function of commercial banks?
Lead Bank Scheme was introduced in:
NABARD deals with:
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