This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 35 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the role of a central bank? A) To issue government bonds and manage public debt. B) To set tax rates and collect government revenue. C) To provide loans exclusively to private individuals. D) The role of a central bank is to manage monetary policy, regulate the banking system, and ensure financial stability. Show Answer Correct Answer: D) The role of a central bank is to manage monetary policy, regulate the banking system, and ensure financial stability. 2. What is the reserve deposit ration (rdr)? A) The proportion of money RBI lends to commercial banks. B) The proportion of total deposits commercial banks keep as reserves. C) The total proportion of money that commercial banks lend to the customers. D) None of the above. Show Answer Correct Answer: B) The proportion of total deposits commercial banks keep as reserves. 3. Demand deposits are considered to be ..... accounts A) Checking. B) Cheque. C) Time. D) Cash. Show Answer Correct Answer: A) Checking. 4. If total deposits created by commercial banks are Rs 12000.LRR is 25% calculate initial deposit A) Rs 3000. B) Rs 4000. C) Rs 5000. D) Rs6000. Show Answer Correct Answer: A) Rs 3000. 5. Who regulates money in India? A) Government of India. B) Reserve bank of India. C) Commercial banks. D) Niti Ayog. Show Answer Correct Answer: B) Reserve bank of India. 6. Trade a good or service for a good or service provided by someone else A) Barter. B) Moeny. C) All the above. D) None of the above. Show Answer Correct Answer: A) Barter. 7. Define Unit of Account A) It is a common yardstick to measure money. B) Savings and deposits can be done monthly. C) When your bank account is protected. D) None of the above. Show Answer Correct Answer: A) It is a common yardstick to measure money. 8. The use of money as credits smooth a transaction because is serve as ..... A) Store of value. B) Measure of value. C) Standards of deferred payment. D) Medium of exchange. Show Answer Correct Answer: C) Standards of deferred payment. 9. Currency should be divisible. This means: A) You can use smaller pieces of it if you want. B) You can cut it in half and give both pieces to a vendor. C) If it's lost someone must return it to you. D) It must have a picture of a president on it. Show Answer Correct Answer: A) You can use smaller pieces of it if you want. 10. Two types of near money are A) Savings accounts and traveler's checks. B) Savings accounts and certificates of deposit. C) Traveler's checks and checking accounts. D) Checking accounts and certificates of deposit. Show Answer Correct Answer: B) Savings accounts and certificates of deposit. 11. What is one challenge of the barter system? A) Difficult to find a match. B) Everyone accepts goods. C) Easy to determine value. D) Goods are always divisible. Show Answer Correct Answer: A) Difficult to find a match. 12. Which of the following is a commonly accepted definition of money? A) Any goods which is commonly use as a store of value. B) Any good which is exchange for gold at a fixed rate. C) Any good which is accepted to a bank. D) Any good which is commonly accepted as a medium of exchange. Show Answer Correct Answer: D) Any good which is commonly accepted as a medium of exchange. 13. If the total deposits created by commercial banks is Rs. 10, 000 crores and legal reserve requirements is 40%, then amount of initial deposits will be ..... A) Rs. 2, 000 crores. B) Rs. 3, 000 crores. C) Rs. 4, 000 crores. D) Rs. 14, 000 crores. Show Answer Correct Answer: C) Rs. 4, 000 crores. 14. What is NOT a safe way to pay for things online? A) Credit card. B) Telling strangers your information. C) PayPal. D) Gift card. Show Answer Correct Answer: B) Telling strangers your information. 15. Which of the following is considered a component of the money supply? A) Savings bonds. B) Treasury bills. C) Currency in circulation. D) Corporate shares. Show Answer Correct Answer: C) Currency in circulation. 16. Banks are able to create credit many times more than the initial deposit through A) Providing overdraft facility. B) Accepting deposit. C) Advancing loan. D) Secondary deposit. Show Answer Correct Answer: D) Secondary deposit. 17. Which statement accurately describes how banks function? A) Banks allow people to store, earn, and borrow money. B) Banks allow people to make their own coins. C) Customers usually lose their money if a bank closes. D) Customers are usually charged higher mortage rates. Show Answer Correct Answer: A) Banks allow people to store, earn, and borrow money. 18. What type of policy does the Fed use to counteract a contraction? A) Fiscal policy. B) Tight money policy. C) Easy money policy. D) Policy lags. Show Answer Correct Answer: C) Easy money policy. 19. What should you say when buying something? A) Goodbye. B) Please and thank you. C) Good morning. D) See you later. Show Answer Correct Answer: B) Please and thank you. 20. When did Congress print paper money for the first time? A) At the beginning of the Civil War. B) When the Constitution was ratified. C) During the Civil War. D) When the country went on the gold standard. Show Answer Correct Answer: C) During the Civil War. 21. Commercial banks can make a profit by the ..... between lending and saving interest rate. A) Comparison. B) Spread. C) Differs. D) Distinguish. Show Answer Correct Answer: B) Spread. 22. Axis Bank is ..... A) Private Bank. B) Public sector bank. C) Cooperative Bank. D) Development Bank. Show Answer Correct Answer: A) Private Bank. 23. What is the primary role of venture capital firms? A) To provide loans to individuals with low credit scores. B) To fund new or expanding firms with great potential. C) To manage retirement funds for employees. D) To offer low-risk investment opportunities to the public. Show Answer Correct Answer: B) To fund new or expanding firms with great potential. 24. Which of the following instrument cannot be used by Central Bank to control money supply? A) Open Market Operations. B) Bank Rate. C) Repo Rate. D) Government spending. Show Answer Correct Answer: D) Government spending. 25. Bankrupt A) Reich. B) Bankrott. C) Arm. D) Bank. Show Answer Correct Answer: B) Bankrott. ← 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