This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 23 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A plastic card that can only be used at an ATM for banking transactions and not at point of sale A) Credit card. B) Debit card. C) ATM card. D) Cash card. Show Answer Correct Answer: C) ATM card. 2. Define currency and give an example. A) Euro (EUR). B) US Dollar (USD). C) Japanese Yen (JPY). D) British Pound (GBP). Show Answer Correct Answer: B) US Dollar (USD). 3. What is the role of Repo Rate in credit control? A) Buying government securities. B) Regulating the margin requirement. C) Controlling the supply of money in the economy. D) Offering short-term loans to commercial banks. Show Answer Correct Answer: C) Controlling the supply of money in the economy. 4. What is the purpose of the Cash Reserve Ratio (CRR)? A) To limit the amount of credit creation by banks. B) To control inflation. C) To encourage savings. D) To stabilize the economy. Show Answer Correct Answer: A) To limit the amount of credit creation by banks. 5. Money supply is a concept A) Stock. B) Flow. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: A) Stock. 6. What role does the federal government play alongside the Federal Reserve according to the document? A) It also helps ensure economic stability. B) It competes with the Federal Reserve. C) It focuses solely on healthcare. D) No role is specified in the document. Show Answer Correct Answer: A) It also helps ensure economic stability. 7. Suppose you transfer RM10 000 from your current account to your savings account. How does this section affect the M1 and M2 money supplies? A) M1 and M2 are both exchanged. B) M1 falls by RM10 000 and M2 rises by RM10 000. C) M1 is unchanged and M2 rises by RM10 000. D) M1 is falls by RM10 000 and M2 is unchanged. Show Answer Correct Answer: B) M1 falls by RM10 000 and M2 rises by RM10 000. 8. Money that is issued by the authority of the government is called- A) Full bodied money. B) Fait money. C) Fuduciary money. D) All the above. Show Answer Correct Answer: B) Fait money. 9. Which is the central in Malaysia? A) Bank Negara. B) Maybank. C) Hong Leong Bank. D) Public Bank. Show Answer Correct Answer: A) Bank Negara. 10. Credit creation process is done by- A) Central bank. B) Commercial bank. C) Any of the above. D) None of the above. Show Answer Correct Answer: B) Commercial bank. 11. Which coin is brown? A) Quarter. B) Dime. C) Penny. D) Nickel. Show Answer Correct Answer: C) Penny. 12. ..... is a bank that, among other things, can lend money to other banks. A) Congress. B) Central Bank. C) Department of the Interior. D) National Bank. Show Answer Correct Answer: B) Central Bank. 13. Central bank must sell government bonds during inflation A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. Which of the following statements describes a function of money?I. Money is a medium of exchange.II. Money is a store of value.III. Money is a unit of account.IV. Money is a factor of production. A) I and IV only. B) I, II and IV only. C) II, III and IV only. D) I, III, and IV only. Show Answer Correct Answer: D) I, III, and IV only. 15. A ..... (thrift) is another type of deposit-taking bank, usually specialized in issuing home loans. A) Savings and Loan. B) Commercial. C) Investment. D) Central. Show Answer Correct Answer: A) Savings and Loan. 16. 'which function is performed by both commercial and central banks? A) Printing money. B) Dealing with foreign currency. C) Operating monetary policy. D) Giving loan to people. Show Answer Correct Answer: B) Dealing with foreign currency. 17. Which of the following is not concerned with banking organization? A) Bank rate. B) Fiscal deficit. C) Credit creation. D) Cash reserve ratio. Show Answer Correct Answer: B) Fiscal deficit. 18. Aggregate monetary resources in supply of money is A) M1. B) M2. C) M3. D) M4. Show Answer Correct Answer: C) M3. 19. In India, there are four alternatives measures of money supply:M1, M2, M3 and M4, of these M1= A) Currency with people. B) Currency with people-demand deposits. C) Currency with people-demand deposits + other deposit with the reserve bank. D) None of these. Show Answer Correct Answer: C) Currency with people-demand deposits + other deposit with the reserve bank. 20. The primary function of Commercial Bank is? A) ACCEPTING DEPOSITS. B) GIVING LOAN. C) CREATING CREDIT. D) ALL OF THESE. Show Answer Correct Answer: D) ALL OF THESE. 21. Penny is an artist, and John is a carpenter. Penny agrees to paint a portrait of John's family in exchange for a handmade table created by John. How do Penny and John pay for their goods in their transaction? A) Using a store of value. B) Through credit. C) Through bartering. D) With currency. Show Answer Correct Answer: C) Through bartering. 22. To increase the money supply in the economy ..... A) RBI should increase bank rate or repo rate. B) RBI should decrease repo rate. C) RBI should increase margin requirement. D) All of the above. Show Answer Correct Answer: B) RBI should decrease repo rate. 23. Subsidies are an example of: A) Revenue expenditure. B) Capital expenditure. C) Plan expenditure. D) None of them. Show Answer Correct Answer: A) Revenue expenditure. 24. If the total deposit created by commercial banks is Rs 20000 cr and LRR is 20%, then amount of initial deposit will be A) Rs 2000 cr. B) Rs 3000 cr. C) Rs 4000 cr. D) Rs 14000 cr. Show Answer Correct Answer: C) Rs 4000 cr. 25. Full form of ATM is A) Automation Telephone Machine. B) Automatic Television Machine. C) Automated Teller Machine. D) Automated Telepathy Machine. Show Answer Correct Answer: C) Automated Teller Machine. ← 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