This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 34 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which agency regulates money supply in India A) Finance Ministry. B) Commercial Bank. C) RBI. D) Commerce Ministry. Show Answer Correct Answer: C) RBI. 2. If the reserve requirement is 8 percent, how much of a $ 100 deposit must be kept by a customer's bank and not loaned to other customers? A) $ 8.00. B) $ 92.00. C) $ 80.00. D) $ 12.00. Show Answer Correct Answer: A) $ 8.00. 3. T/F:Polymer banknotes are less durable than paper banknotes. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 4. Depository institution owned by and operated for the benefit of its customers A) Commercial bank. B) Federal Reserve. C) Credit Union. D) Savings and Loan. Show Answer Correct Answer: C) Credit Union. 5. What are the potential benefits of investing in stocks? A) No potential for growth. B) The potential benefits of investing in stocks include the opportunity for capital appreciation, dividend income, and portfolio diversification. C) Limited investment options. D) Losing all your money. Show Answer Correct Answer: B) The potential benefits of investing in stocks include the opportunity for capital appreciation, dividend income, and portfolio diversification. 6. What is the definition of money according to economists? A) Only coins and notes. B) Anything that can be traded. C) Anything generally accepted as a means of exchange. D) A form of barter. Show Answer Correct Answer: C) Anything generally accepted as a means of exchange. 7. The use of a mobile (cell) phone to make payments is an example of which function ofmoney? A) A medium of exchange. B) A standard of deferred payment. C) A store of wealth. D) A unit of account. Show Answer Correct Answer: A) A medium of exchange. 8. Firmar A) Signature. B) Firm. C) Check. D) To sign. Show Answer Correct Answer: D) To sign. 9. What are the functions of commercial banks? A) The functions of commercial banks include accepting deposits, providing loans, offering overdraft facilities, facilitating international trade, issuing credit cards, providing safe deposit lockers, and acting as financial intermediaries. B) Operating as a non-profit organization. C) Providing medical services. D) Selling insurance policies. Show Answer Correct Answer: A) The functions of commercial banks include accepting deposits, providing loans, offering overdraft facilities, facilitating international trade, issuing credit cards, providing safe deposit lockers, and acting as financial intermediaries. 10. Interest earned on both principal and previous interest earnings A) Special Interest. B) Complex Interest. C) Complicated Interest. D) Compound Interest. Show Answer Correct Answer: D) Compound Interest. 11. Autonomous consumption is indicated by ..... in the consumption function. A) C. B) AC. C) C. D) None of the above. Show Answer Correct Answer: A) C. 12. Because homes were rising in cost, banks gave ..... to people who were not the perfect candidates. A) Income. B) Mortgages. C) Expenses. D) None of the above. Show Answer Correct Answer: B) Mortgages. 13. Definition of Commercial Bank is A) Financial institutions owned by public companies to maximize profits and to guarantee the safety of public deposits. B) Financial institutions owned by the government to administrate national financial matters, to control and implement national financial policy systems. C) All the above. D) None of the above. Show Answer Correct Answer: A) Financial institutions owned by public companies to maximize profits and to guarantee the safety of public deposits. 14. Which of these is a banking service? A) To check homework. B) To open a door. C) To spend money. D) To transfer money. Show Answer Correct Answer: D) To transfer money. 15. What are subprime mortgages? A) Loans made below the prime home price. B) Loans made on below standard houses. C) Mortgages made below the average interest rate. D) Mortgages made to people with low incomes and poor credit. Show Answer Correct Answer: D) Mortgages made to people with low incomes and poor credit. 16. Who is the present Governor of RBI? A) Raghuram Rajan. B) Shakti kanta das. C) Nirmala Sitaraman. D) Amit Shah. Show Answer Correct Answer: B) Shakti kanta das. 17. What is contactless payment? A) Transaction completed where you don't use your hands. B) Transaction with no physical connection to the person being paid. C) Payment made where no people are contacted. D) Payment where money is not used. Show Answer Correct Answer: B) Transaction with no physical connection to the person being paid. 18. Which of the following is an example of fiat money that has no intrinsic value but is widely accepted due to government mandate and trust? A) A gold coin of a specific weight and purity. B) Salt used as a wage and medium of exchange in ancient times. C) Modern paper currency and coins that are legal tender. D) A receipt for gold stored in a vault, redeemable on demand. Show Answer Correct Answer: C) Modern paper currency and coins that are legal tender. 19. Why might a person invest in CDs rather than savings? A) CDs have a lower risk of losing money. B) CDs can be used at any time. C) CDs offer a higher interest rate. D) CDs are easily available. Show Answer Correct Answer: C) CDs offer a higher interest rate. 20. Explain the importance of commercial banks in the economy. A) Commercial banks are irrelevant in the economy. B) Commercial banks hinder economic growth. C) Commercial banks only benefit the wealthy. D) Commercial banks are important in the economy for providing financial services, allocating resources, promoting economic growth, and supporting businesses and individuals. Show Answer Correct Answer: D) Commercial banks are important in the economy for providing financial services, allocating resources, promoting economic growth, and supporting businesses and individuals. 21. Which function of money is known as "unit of account" . A) Medium of exchange. B) Measure of value. C) Standard of deferred payment. D) Store of value. Show Answer Correct Answer: B) Measure of value. 22. ..... is a designation printed on paper currency that says it must be accepted as payment A) Barter. B) Fiat. C) Legal tender. D) Specie. Show Answer Correct Answer: C) Legal tender. 23. What is the value of total deposits created if initial deposits are 100 crores and LRR is 20% A) 200 cr. B) 500cr. C) 1000cr. D) 250cr. Show Answer Correct Answer: B) 500cr. 24. What is the benefit of saving money? A) Financial security, emergency funds, and future investments. B) Impulse buying. C) Avoiding debt. D) Limited financial freedom. Show Answer Correct Answer: A) Financial security, emergency funds, and future investments. 25. Money serves as a ..... because it holds its value over time. A) Medium of exchange. B) Interest rate. C) Store of value. D) Asset. Show Answer Correct Answer: C) Store of value. ← 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