This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 15 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not the function of the Central Bank A) Banking facilities to government. B) Banking facilities to public. C) Lending to government. D) Lending to commercial banks. Show Answer Correct Answer: B) Banking facilities to public. 2. Supply of money is a A) Flow variable. B) Stock variable. C) Real flow. D) None of these. Show Answer Correct Answer: B) Stock variable. 3. Pension payment is an example of: A) Plan expenditure. B) Revenue expenditure. C) Capital expenditure. D) Non-plan expenditure. Show Answer Correct Answer: B) Revenue expenditure. 4. My cousin wanted to borrow $ 300 from me. I loaned him the money but I told him that he would have to pay me back $ 330. The money that was paid back to me on top of the loan is known as ..... A) Credit. B) Interest. C) Savings. D) Debt. Show Answer Correct Answer: B) Interest. 5. SLR requires the commercial bank to build their liquid assets by way of A) Reserve of cash. B) Reserve of gold. C) Resurve of unencumbered secirities. D) All of these. Show Answer Correct Answer: D) All of these. 6. SLR means banks keep part of deposits in cash, gold, or approved papers. What must banks hold for SLR? A) Cash, gold, or approved securities. B) Only toys. C) Only foreign coins. D) None of the above. Show Answer Correct Answer: A) Cash, gold, or approved securities. 7. Securities are ..... for the person who buys them, but are ..... for the individual or firm that issues them. A) Assets; liabilities. B) Liabilities; assets. C) Negotiable; non negotiable. D) Nonnegotiable; negotiable. Show Answer Correct Answer: A) Assets; liabilities. 8. The division of money into M1, M2, and M3 is based on A) Assets. B) Supply. C) Amount in circulation. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 9. Imagine Oliver, Evelyn, and Mason are playing a game of Monopoly. They are curious about the term used to describe the total amount of money in circulation within their game. Can you help them out? A) Money supply. B) Interest rate. C) Currency. D) Inflation rate. Show Answer Correct Answer: A) Money supply. 10. It is the continuing increase of the general price level in the market. A) Inflation. B) Deflation. C) Stagflation. D) Recession. Show Answer Correct Answer: A) Inflation. 11. An important job of the Federal Reserve is to A) Protect the nation. B) Manage and control the money supply. C) Make sure all goods are safe. D) All of the above. Show Answer Correct Answer: B) Manage and control the money supply. 12. Money borrowed from a bank that you pay in fixed monthly payments or installments. A) Money Market Account. B) Investment Banking. C) Personal Loan. D) CD. Show Answer Correct Answer: C) Personal Loan. 13. Functions of Money:Money serves as a ..... , which means that money acts as an intermediary between the buyer and the seller. A) Medium of exchange. B) Store of value. C) Unit of account. D) Standard of deferred payment. Show Answer Correct Answer: A) Medium of exchange. 14. ..... is the bank that trades in money with 2 main activities:receiving deposits and making loans. A) Investment bank. B) Central bank. C) Commercial bank. D) Private bank. Show Answer Correct Answer: C) Commercial bank. 15. Cash reserve ratio is defined as A) Reserve maintained by commercial banks within themselves. B) Reserve maintained by commercial banks with central bank. C) Any of the above. D) None of the above. Show Answer Correct Answer: B) Reserve maintained by commercial banks with central bank. 16. ..... is that money whose money value is equal to commodity value. A) Full bodied money. B) Credit money. C) Fiat money. D) Fiduciary money. Show Answer Correct Answer: A) Full bodied money. 17. How do banks facilitate international trade? A) Banks facilitate international trade by offering letters of credit, foreign exchange services, trade financing, and processing international payments. B) Banks charge high fees for all international services. C) Banks only deal with domestic transactions. D) Banks provide insurance for international shipments. Show Answer Correct Answer: A) Banks facilitate international trade by offering letters of credit, foreign exchange services, trade financing, and processing international payments. 18. Depositar A) Debit. B) To deposit. C) To sign. D) Check. Show Answer Correct Answer: B) To deposit. 19. Signature of ..... appears on a Rs. 2, 000 currency A) Prime Minister India. B) Governor of Reserve bank of India. C) President of India. D) Chief Justice of India. Show Answer Correct Answer: B) Governor of Reserve bank of India. 20. Which of the four characteristics of money can be defined as "able to be broke down" ? A) Uniformity. B) Durability. C) Portability. D) Divisibility. Show Answer Correct Answer: D) Divisibility. 21. Which is a main goal of the Federal Reserve? A) Create a high level of inflation. B) Create a stable, healthy economy. C) Print currency for American citizens. D) Develop new laws for the United States. Show Answer Correct Answer: B) Create a stable, healthy economy. 22. What is the main objective of a central bank's monetary policy? A) Increase inflation. B) Stabilize the economy. C) Increase employment only. D) Control government spending. Show Answer Correct Answer: B) Stabilize the economy. 23. What is the potential advantage of using a direct deposit for receiving a paycheck? A) It increases the amount of deposit. B) It provides an opportunity to double your paycheck. C) It allows for quicker access to the funds compared to receiving a paper check. D) It requires a physical trip to the bank to deposit the check. Show Answer Correct Answer: C) It allows for quicker access to the funds compared to receiving a paper check. 24. Describe the process of applying for a loan. A) Choosing a loan type without checking credit score. B) Waiting for a decision before researching lenders. C) The process of applying for a loan involves determining the loan type, checking credit score, researching lenders, gathering documents, filling out the application, submitting it, waiting for a decision, and signing the agreement if approved. D) Submitting the application without any documents. Show Answer Correct Answer: C) The process of applying for a loan involves determining the loan type, checking credit score, researching lenders, gathering documents, filling out the application, submitting it, waiting for a decision, and signing the agreement if approved. 25. The interest on the reccuring deposit (RD) is ..... the interest on fixed deposit (FD) A) Less than. B) Greater than. C) Equal to. D) No related to. Show Answer Correct Answer: A) Less than. ← 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