This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 29 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How can you protect your checking account when using online and mobile banking? A) Use strong and unique passwords. B) Avoid using public Wi-Fi networks. C) Regularly monitor your account activity. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Quality of an asset that permits it to be converted quickly into cash? A) Liquidity. B) Share. C) All the above. D) None of the above. Show Answer Correct Answer: A) Liquidity. 3. Which one is used to buy things easily? A) Stones. B) Money. C) Rain. D) None of the above. Show Answer Correct Answer: B) Money. 4. What is meant by trading without money? A) Trading that involves borrowing money. B) Trading that requires a bank account. C) Trading using only digital currencies. D) Trading without money means exchanging goods or services directly without using currency. Show Answer Correct Answer: D) Trading without money means exchanging goods or services directly without using currency. 5. Name the institution which performs the functions of accepting deposits, granting loans and making investments, with the aim of earning profits. A) Commercial Bank. B) Central Bank. C) World Bank. D) None of these. Show Answer Correct Answer: A) Commercial Bank. 6. People saving for retirement want to make wise investments so their ..... will grow and they can live comfortably. A) Assets. B) Income. C) All the above. D) None of the above. Show Answer Correct Answer: A) Assets. 7. Which are not functions of a commercial bank? A) Cheque clearance and foreign exchange dealings. B) Internet banking and money transfer facilities. C) Lender of the last resort and bankers' bank. D) Loans and credit creation. Show Answer Correct Answer: C) Lender of the last resort and bankers' bank. 8. Moving money from one account to another is called a ..... A) Swap. B) Transfer. C) Glide. D) Movement. Show Answer Correct Answer: B) Transfer. 9. Which of following is not included in M1 A) Inter bank deposits. B) Currency n coins with public. C) Other deposits with RBI. D) Demand deposits with banks. Show Answer Correct Answer: A) Inter bank deposits. 10. When you pay for a new CD with a debit card, you authorize the transfer of money from your account to the music store's account. In other words, a payment by debit card is the electronic form of a payment by A) Money order. B) Credit card. C) Check. D) Cashier's check. Show Answer Correct Answer: C) Check. 11. Which is a smart money habit? A) Spending all at once. B) Not counting change. C) Saving some money. D) Buying everything you see. Show Answer Correct Answer: C) Saving some money. 12. Define the term 'barter' A) Barter is an instrument of exchange. B) Barter is the exchange of goods and services with the use of money. C) Barter is the exchange of one thing for another without the use of money. D) Barter is a rate of exchange. Show Answer Correct Answer: C) Barter is the exchange of one thing for another without the use of money. 13. How does the Reserve Bank of India (RBI) primarily use Open Market Operations (OMO) to increase the money supply? A) By increasing the Repo Rate, making commercial borrowing more expensive. B) By selling government securities to commercial banks. C) By buying government securities from commercial banks. D) By decreasing the Statutory Liquidity Ratio (SLR) requirements. Show Answer Correct Answer: C) By buying government securities from commercial banks. 14. Which of the following is a cooperative lending association for a particular group, usually employees of a specific firm? A) Savings & Loan Association. B) Credit Union. C) Central Bank. D) Commercial Bank. Show Answer Correct Answer: B) Credit Union. 15. Which is the most liquid measure of the money supply? A) M4. B) M3. C) M2. D) M1. Show Answer Correct Answer: D) M1. 16. Monetary standard under which the basic currency unit is equivalent to, and can be exchanged for, a specific amount of gold A) Monetary standard. B) Legal tender. C) Treasury coin notes. D) Gold standard. E) Inconvertible fiat money standard. Show Answer Correct Answer: D) Gold standard. 17. Emilio borrows $ 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years? (I=prt, then add I to p to get the answer) A) $ 150. B) $ 192. C) $ 1350. D) $ 1392. Show Answer Correct Answer: D) $ 1392. 18. Payment of loan is: A) Revenue expenditure. B) Capital expenditure. C) Revenue receipts. D) Capital receipts. Show Answer Correct Answer: B) Capital expenditure. 19. During a discussion about the nature of money, Adi and Dewi were trying to categorize different forms of money based on their physical composition. Adi suggested that there are two primary categories of money. What did they conclude? A) Cartal money and Giral money. B) Physical money and Electronic money. C) Paper money and Metal money. D) Full bodied money and Token money. Show Answer Correct Answer: C) Paper money and Metal money. 20. What is the other name for 'Money Multiplier'? A) Credit Multiplier. B) Deposit Multiplier. C) Cash Reserve Ratio. D) None of these. Show Answer Correct Answer: B) Deposit Multiplier. 21. What are some reasons for why so many Americans live paycheck-to-paycheck? A) Low wages. B) High cost of living. C) Lack of financial education. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. Common fees that may be charged by a depository institution include all EXCEPT: A) Overdraft fee. B) Late fee. C) ATM fee. D) Minimum Balance fee. Show Answer Correct Answer: B) Late fee. 23. ..... money is accepted as a medium of exchange because of the trust between the payer and the payee A) Fiat. B) Fiduciary. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiduciary. 24. Sudden rush by depositors to withdraw their deposited funds from banks A) Bank holiday. B) Bank run. C) Gold standard. D) Panic. Show Answer Correct Answer: B) Bank run. 25. Banks create credit: A) Out of nothing. B) On the basis of their securities. C) On the basis of their total assests. D) On the basis of deposits. Show Answer Correct Answer: D) On the basis of deposits. ← 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