This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 12 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The value of what is given up when one option is chosen over another A) Value. B) Need. C) Want. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 2. Income not spent on immediate wants A) Savings. B) Income. C) All the above. D) None of the above. Show Answer Correct Answer: A) Savings. 3. Another word for "discount" A) Reduction. B) Redaction. C) Reddiction. D) Redication. Show Answer Correct Answer: A) Reduction. 4. Which is NOT a characteristic of money? A) Durability. B) Portability. C) Scarcity. D) Legal. Show Answer Correct Answer: D) Legal. 5. An account at a depository institution where money is kept for easy access and for everyday use A) Savings. B) Overdraft. C) Certificate of deposit. D) Checking. Show Answer Correct Answer: D) Checking. 6. Money serves as a ..... because it hold its value over time. A) Medium of exchange. B) Store of value. C) All the above. D) None of the above. Show Answer Correct Answer: B) Store of value. 7. The principal-agent problem would not arise if A) Stockholders have complete information about the activities of the firm. B) Managers take complete control of the firm. C) There are information asymmetries. D) Governements do not intervene. Show Answer Correct Answer: A) Stockholders have complete information about the activities of the firm. 8. This is money by government decree, has no alternate value A) Specie. B) Fiat money. C) Gold standard. D) Barter. Show Answer Correct Answer: B) Fiat money. 9. Money is primarily defined as: A) A store of gold. B) A medium of exchange. C) A means of barter. D) A method of taxation. Show Answer Correct Answer: B) A medium of exchange. 10. Which of these is an example of M1? A) Savings deposits. B) Property. C) Cash. D) Credit. Show Answer Correct Answer: C) Cash. 11. What is a common way for banks to lend money to customers? A) Overdrafts. B) Investment accounts. C) Current accounts. D) Savings accounts. Show Answer Correct Answer: A) Overdrafts. 12. The rate of interest at which Bank accepts deposit from the house hole is known as A) Lending rate. B) Borrowing rate. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: B) Borrowing rate. 13. Money serves as a ..... It allows people to measure the relative costs of goods and services. A) Store of value. B) Unit of account. C) Investment. D) None of the above. Show Answer Correct Answer: B) Unit of account. 14. Whether located at banks or public venues, automated teller machines A) Are data terminals linked to a bank's computer network. B) Can only be used to withdraw cash or transfer money between accounts. C) Accept debit cards and stored-value cards as well as ATM cards. D) Automatically deduct a user fee from the customer's bank account. Show Answer Correct Answer: A) Are data terminals linked to a bank's computer network. 15. A(n) ..... is a widespread panic in which great numbers of people try to redeem their paper money. A) Default. B) Bank run. C) Fractinal reserve banking. D) Credit union. Show Answer Correct Answer: B) Bank run. 16. What is the best definition of money? A) Anything generally accepted as payment for goods and services. B) Just the cash in your wallet as payment for goods and services. C) Precious stones or feathers that you can exchange for goods and services. D) Your debit card that you use contactless for the exchange of goods and services. Show Answer Correct Answer: A) Anything generally accepted as payment for goods and services. 17. Bank Negara was established in ..... A) 26 February 1959. B) 26 January 1959. C) 16 September 1963. D) 31 August 1957. Show Answer Correct Answer: B) 26 January 1959. 18. Banks create credit on the basis of A) Deposits. B) Securities. C) Total assets. D) None of the above. Show Answer Correct Answer: A) Deposits. 19. When looking for a savings account, it is best to look for an account with ..... interest. A) Higher. B) Lower. C) No. D) None of the above. Show Answer Correct Answer: A) Higher. 20. What is the primary function of money? A) Medium of exchange. B) Measure of income. C) Means of production. D) Distribution of wealth. Show Answer Correct Answer: A) Medium of exchange. 21. Which of the following is an example of representative money? A) A fur coat. B) Diamonds. C) Gold earrings. D) A gold certificate. Show Answer Correct Answer: D) A gold certificate. 22. You bought a mug that cost $ 15 and you paid with a $ 20 bill. What did you get back? A) Refund. B) Recheck. C) Recipe. D) Change. Show Answer Correct Answer: D) Change. 23. U.S. government institution that provided insurance on depositor's accounts A) FDIC. B) Federal Reserve. C) Bank of the United States. D) Central Bank. Show Answer Correct Answer: A) FDIC. 24. Explain the term 'banking system'. A) The banking system refers to the stock market only. B) A banking system is a type of insurance policy. C) A banking system is a government agency that prints money. D) The banking system is a network of financial institutions that manage deposits, loans, and transactions. Show Answer Correct Answer: D) The banking system is a network of financial institutions that manage deposits, loans, and transactions. 25. Which of the following statements about M1 assets is true? A) M1 assets cannot be converted into cash easily. B) M1 assets are stored in savings accounts. C) M1 assets can be converted into cash easily. D) M1 assets do not have liquidity. Show Answer Correct Answer: C) M1 assets can be converted into cash easily. ← PreviousNext →Related QuizzesClass 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 1Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 2Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 3Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 4Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 5Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 6Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 7Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 8Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 9Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books