This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 18 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a quantitative method of credit control? A) Open Market Operation. B) Margin Requirements. C) Variable Reserve Ratio. D) Bank Rate Policy. Show Answer Correct Answer: B) Margin Requirements. 2. Credit Multiplier is: A) 1/CRR. B) Cash X 1/CRR. C) Cash x CRR. D) None of these. Show Answer Correct Answer: A) 1/CRR. 3. What is the effect of lending on the economy as described in the text? A) It decreases the amount of money available to spend. B) It increases the amount of money available to spend. C) It has no effect on the amount of money available to spend. D) It leads to a decrease in the number of businesses. Show Answer Correct Answer: B) It increases the amount of money available to spend. 4. Which of the following agency e is responsible for issuing rupees 1 currency note in India A) Reserve Bank of India. B) Ministry of commerce. C) Ministry of finance. D) Niti aayog. Show Answer Correct Answer: C) Ministry of finance. 5. Which of the following is true about money supply A) It is measured over a period of time. B) It remains constant. C) It is measured at a point of time. D) None of the above. Show Answer Correct Answer: C) It is measured at a point of time. 6. Which of the following is not a characteristic of money? A) Durability. B) Invisibility. C) Portability. D) Divisibility. Show Answer Correct Answer: B) Invisibility. 7. Which of the following are objectives of budget? A) Reallocation of resources. B) Redistribution of income. C) Economic stability. D) All of these. Show Answer Correct Answer: D) All of these. 8. Which of following agency is responsible for issuing ₹ 1 currency note in India? A) RBI. B) Finance ministry. C) NITI Aayog. D) Home Ministry. Show Answer Correct Answer: B) Finance ministry. 9. Demand for money.The Transaction Motive of money means A) For investment. B) For day to day work. C) A and B both. D) None of the above. Show Answer Correct Answer: B) For day to day work. 10. When general prices increase, the value of money: A) Increases. B) Decreases. C) Remains the same. D) Doubles. Show Answer Correct Answer: B) Decreases. 11. Credit function is the principal function of the commercial banks A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. Arunji Nathji A) Madras. B) Bengal. C) Patna. D) Surat. Show Answer Correct Answer: D) Surat. 13. Receipt A) Rechnung. B) Rezeption. C) Rezeptionist. D) Rechner. Show Answer Correct Answer: A) Rechnung. 14. The process of money creation 8s done by A) Central bank. B) Rural bank. C) Commercial bank. D) World bank. Show Answer Correct Answer: D) World bank. 15. What characteristic of money ensures it can be easily transported? A) Durable. B) Divisible. C) Portable. D) Homogeneous. Show Answer Correct Answer: C) Portable. 16. Which of the following statements is true about demand deposits? A) It includes both fixed deposits and current account deposits. B) It includes both savings account deposits and fixed deposits. C) It includes both current account deposits and savings account deposits. D) It includes fixed deposits, current account deposits and savings account deposits. Show Answer Correct Answer: C) It includes both current account deposits and savings account deposits. 17. Which of the following changes by the central bank can increase the money supply A) Increase in repo rate. B) Increase in CRR. C) Sale of government securities in the open market. D) Purchase of government securities in the open market. Show Answer Correct Answer: D) Purchase of government securities in the open market. 18. People can use their earnings to build ..... A) Money. B) Time. C) Wealth. D) None of the above. Show Answer Correct Answer: C) Wealth. 19. Correct formula of deposit multiplier is ..... A) 1/CRR. B) 1/SLR. C) 1/LRR. D) None. Show Answer Correct Answer: C) 1/LRR. 20. An account at a depository institution where you keep money that is easy to access, but not used for everyday consumption A) Checking. B) Overdraft. C) Savings. D) Certificate of deposit. Show Answer Correct Answer: C) Savings. 21. A condition that exists when a borrower cannot repay a loan A) Liquidity. B) Central Bank. C) Member Bank. D) Default. Show Answer Correct Answer: D) Default. 22. Total deposits creaed by commercial banks is Rs 12, 000 crore and LRR is 25%. Calculate the amount of initial deposits. A) Rs 6000 crore. B) Rs 4000 crore. C) Rs 5000 crore. D) Rs 3000 crore. Show Answer Correct Answer: D) Rs 3000 crore. 23. In economics terms, what does it mean if something has liquidity? A) The asset can be easily traded for water. B) The asset can be easily used or converted into cash. C) The asset can be a solid or a gas depending on the temperature. D) The asset takes a long time to be converted into cash. Show Answer Correct Answer: B) The asset can be easily used or converted into cash. 24. Where can you go to withdraw money? A) AMT. B) MTA. C) ATM. D) ACT. Show Answer Correct Answer: C) ATM. 25. El cheque A) Cash. B) Savings account. C) Check. D) To pay in cash. Show Answer Correct Answer: C) Check. ← 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