EconomicsMacro Economics: Money and Banking

Match List - I with List - II. List - I (Financial Terms) List - II (…

Match List - I with List - II.

List - I (Financial Terms)		List - II (Examples)
(A)	Monetary Base	(I)	Loans extended by banks
(B)	Assets	(II)	Reserve Bank of India
(C)	Liabilities	(III)	Currency
(D)	Credit control	(IV)	Deposits accepted by the banks

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 2

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Here is the matching of List - I with List - II:

Monetary Base (A) - Currency (III): The monetary base refers to the total amount of a country's currency in circulation (including currency held by the central bank) plus the commercial banks' reserves with the central bank. Currency is a component of the monetary base.
Assets (B) - Loans extended by banks (I): In financial terms, assets refer to what a company or individual owns. For banks, one of their major assets is the loans they extend to individuals and businesses.
Liabilities (C) - Deposits accepted by the banks (IV): Liabilities are obligations or debts that a company or individual owes. For banks, one of the primary liabilities is the deposits they accept from customers.
Credit control (D) - Reserve Bank of India (II): Credit control involves the measures taken by a central bank to regulate the amount of credit in the economy. The Reserve Bank of India (RBI) plays a key role in implementing credit control policies in India.

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Here is the matching of List - I with List - II:

Monetary Base (A) - Currency (III): The monetary base refers to the total amount of a country's currency in circulation (including currency held by the central bank) plus the commercial banks' reserves with the central bank. Currency is a component of the monetary base.
Assets (B) - Loans extended by banks (I): In financial terms, assets refer to what a company or individual owns. For banks, one of their major assets is the loans they extend to individuals and businesses.
Liabilities (C) - Deposits accepted by the banks (IV): Liabilities are obligations or debts that a company or individual owes. For banks, one of the primary liabilities is the deposits they accept from customers.
Credit control (D) - Reserve Bank of India (II): Credit control involves the measures taken by a central bank to regulate the amount of credit in the economy. The Reserve Bank of India (RBI) plays a key role in implementing credit control policies in India.