BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Changes in reserve requirements
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CRR
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Open market policy
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Bank rate
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Detailed explanation-1: -1) The stock of monetary gold Held in reserves as a backing to paper currency is not included in money supply.
Detailed explanation-2: -Answer: Which of the following is not included in money supply? Explanation: Interbank deposits are not included in the money supply.
Detailed explanation-3: -Money supply includes the currency that is in circulation with the public at a particular point of time, hence it does not include the money held by government or commercial banks as it is not in circulation with the public at a a given point in time.
Detailed explanation-4: -In India, money supply is regulated by the Reserve bank of India which is the central bank through various fiscal and monetary policies of the government.