What is a barter system? What are its drawbacks?
What are the main functions of money? How does money overcome the shortcomings of a barter system?
What is transaction demand for money? How is it related to the value of transactions over a specified period of time?
Suppose a bond promises Rs 500 at the end of two years with no intermediate return. If the rate of interest is 5 per cent per annum what is the price of the bond?
Why is speculative demand for money inversely related to the rate of interest?
What is ‘liquidity trap’?
What are the alternative definitions of money supply in India?
What is a ‘legal tender’? What is ‘fiat money’?
What is High Powered Money?
Explain the functions of a commercial bank.
What is money multiplier? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier?
What are the instruments of monetary policy of RBI? How does RBI stabilize money supply against exogenous shocks?
Do you consider a commercial bank ‘creator of money’ in the economy?
What role of RBI is known as ‘lender of last resort’?