This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 30 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT one of the 3 main responsibilities of the regional reserve banks? A) Contributing to monetary policy. B) Creating banking regulations. C) Providing financial services. D) Supervising commercial banks. Show Answer Correct Answer: B) Creating banking regulations. 2. What role does the RBI play as a banker's bank? A) The RBI acts as a direct lender to individuals and businesses. B) The RBI primarily focuses on international trade regulations. C) The RBI provides financial services to commercial banks, regulates the banking sector, and ensures liquidity. D) The RBI only issues currency notes for the government. Show Answer Correct Answer: C) The RBI provides financial services to commercial banks, regulates the banking sector, and ensures liquidity. 3. Money demand for speculative motives are influence by ..... A) Money supply. B) Rate of interest. C) Level of income. D) General price level. Show Answer Correct Answer: B) Rate of interest. 4. Which of the following statements about a gold standard is FALSE? A) The government cannot print too much paper currency. B) People feel more secure about their money. C) It is easier to expand the money supply. D) The government risks draining its gold reserves. Show Answer Correct Answer: C) It is easier to expand the money supply. 5. Brief period during which all banks closed to prevent bank runs A) National holiday. B) Quarantine. C) Lockout. D) Bank holiday. Show Answer Correct Answer: D) Bank holiday. 6. T/F:Money must be limited in supply to maintain its value. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. Which of the following is not the qualitative method of Credit Control? A) Consumer Credit Regulation. B) Open Market Operation. C) Moral Suasion. D) Margin Requirement. Show Answer Correct Answer: B) Open Market Operation. 8. Legally required cash reserve of the commercial bank with the central bank as a percentage of their total deposit. A) Bank Rate. B) SLR. C) CRR. D) Marginal Requirment. Show Answer Correct Answer: C) CRR. 9. What is the main function of money that allows people to save? A) Medium of exchange. B) Unit of account. C) Standard of deferred payments. D) Store of value. Show Answer Correct Answer: D) Store of value. 10. True or False? Putting your money in a savings account can earn you extra money in the form of interest? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. One drawback of water exchange is A) Lack of trust. B) Lakhon coincidence of wants. C) Lack of double coincidence of wants. D) Lack of goods. Show Answer Correct Answer: C) Lack of double coincidence of wants. 12. Use of money today in a way that earns future benefits A) Investment. B) Stocks and bonds. C) All the above. D) None of the above. Show Answer Correct Answer: A) Investment. 13. Which of the four characteristics of money can be defined as "easily moved" ? A) Portability. B) Durability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: A) Portability. 14. In India Currency notes are issue by A) RBI. B) SBI. C) Finance ministry. D) None. Show Answer Correct Answer: D) None. 15. The ease with which an asset can be converted into payment for goods & services. A) Medium of Exchange. B) Legal Tender. C) Liquidity. D) Banking. Show Answer Correct Answer: C) Liquidity. 16. Conceptually, anything is considered money if it functions as: A) A medium of exchange. B) A store of value. C) A unit of account. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Money in the form of coins made from silver or gold A) Money. B) Medium of exchange. C) Measure of value. D) Fiat money. E) Specie. Show Answer Correct Answer: E) Specie. 18. Credit money is increased when CRR A) Falls. B) Rises. C) Remain stable. D) None of the above. Show Answer Correct Answer: A) Falls. 19. The average coins life span is about how long? A) 5 years. B) 10 years. C) 15 years. D) 25 years. Show Answer Correct Answer: D) 25 years. 20. What do we call it when we put money in the bank? A) Deposit. B) Drawing. C) Dancing. D) Driving. Show Answer Correct Answer: A) Deposit. 21. What is the best example of an action(s) that the Federal Reserve (Fed) can take to stabilize our economy? A) Print money. B) Raise interest rates. C) Require other banks to keep a minimum balance. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. Changes in the money supply CANNOT influence overall levels of spending, employment, and prices in the economy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 23. Which of the following best describes "value for money" in a financial context? A) Spending the least amount of money possible. B) Achieving the best possible outcome for the amount spent. C) Maximising profits at any cost. D) Minimising employee salaries. Show Answer Correct Answer: B) Achieving the best possible outcome for the amount spent. 24. A Govt. Budget is prepared for a fiscal year running from: A) 1st January to 31st December. B) 1st April to 31st December. C) 1st April to 31st March. D) 1st January to 30th April. Show Answer Correct Answer: C) 1st April to 31st March. 25. ..... is a monetary system in which paper money and coins are equal to the value of a certain amount of gold. A) Fiat money. B) Representative oney. C) Gold standard. D) Fractional reserve banking. Show Answer Correct Answer: C) Gold standard. ← 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