This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 40 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who circulates all mint and one rupee notes in India? A) Ministry of Finance. B) RBI. C) Ministry of External Affairs. D) State Government. Show Answer Correct Answer: A) Ministry of Finance. 2. Which of the characteristics of money can be defined as "easily moved" ? A) Portability. B) Durability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: A) Portability. 3. Money enables people to save. Which function of money does this describe? A) Measure of value. B) Medium of exchange. C) Standard for deferred payment. D) Store of value. Show Answer Correct Answer: D) Store of value. 4. What are some common banking services offered to customers? A) Grocery delivery. B) Car rentals. C) Pet grooming. D) Some common banking services offered to customers include savings accounts, checking accounts, loans, credit cards, and online banking. Show Answer Correct Answer: D) Some common banking services offered to customers include savings accounts, checking accounts, loans, credit cards, and online banking. 5. If exports are to be increased then the currency of a country should be A) Appreciated. B) No change. C) Depreciated. D) Appreciated or depreciated. Show Answer Correct Answer: C) Depreciated. 6. What are the target percentages for keeping inflation and unemployment low? A) 2%-3%. B) 0%-1%. C) 1%-2%. D) 3%-4%. Show Answer Correct Answer: A) 2%-3%. 7. Describe the concept of compound interest. A) Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It grows exponentially over time. B) Compound interest is calculated only on the initial principal amount. C) Compound interest decreases over time. D) Compound interest is not affected by the interest accumulated from previous periods. Show Answer Correct Answer: A) Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It grows exponentially over time. 8. The new issues market is also known as A) Money market. B) Primary market. C) Stock exchange. D) Secondary market. Show Answer Correct Answer: B) Primary market. 9. What is used to measure inflation? A) A ruler. B) CPI Consumer Price Index. C) A scale. D) None of the above. Show Answer Correct Answer: B) CPI Consumer Price Index. 10. Specific type of loan used to buy real estate A) Principal. B) Interest. C) Credit Card. D) Mortgage. Show Answer Correct Answer: D) Mortgage. 11. What is the difference between a savings account and a current account? A) A savings account is for saving and earning interest; a current account is for daily transactions with no interest. B) A savings account is for daily transactions; a current account is for saving and earning interest. C) A savings account has higher fees than a current account. D) A savings account can only be opened by businesses, while a current account is for individuals. Show Answer Correct Answer: A) A savings account is for saving and earning interest; a current account is for daily transactions with no interest. 12. What is the value of multiplier if LR is 10% A) 20. B) 10. C) 5. D) 50. Show Answer Correct Answer: B) 10. 13. Commercial banks create money by way of A) Time deposits. B) Demand deposits. C) Treasury bills. D) Bills of exchange. Show Answer Correct Answer: B) Demand deposits. 14. Anything that people will accept as payment for goods and services A) Money. B) Barter. C) All the above. D) None of the above. Show Answer Correct Answer: A) Money. 15. Inflation is to be combated the RBI- A) Raise in CRR and lower SLR. B) Lower CRR and raise SLR. C) Raise both CRR and SLR. D) None of these. Show Answer Correct Answer: C) Raise both CRR and SLR. 16. Who is the controller of the credit in the banking system? A) Commercial banks. B) Central bank. C) All the above. D) None of the above. Show Answer Correct Answer: B) Central bank. 17. Influencing the economy by changing the reserve requirement is called: A) Fiscal policy. B) Monetary policy. C) Tight Money. D) Easy Money. Show Answer Correct Answer: B) Monetary policy. 18. The advantage of using money is A) It is durable. B) It doesnot require much space to keep. C) IT is potable. D) All. Show Answer Correct Answer: D) All. 19. What types of loans do banks typically offer? A) Payday loans. B) Personal loans, mortgage loans, auto loans, student loans, business loans. C) Credit card loans. D) Home equity loans. Show Answer Correct Answer: B) Personal loans, mortgage loans, auto loans, student loans, business loans. 20. Which of the following would be the initial effect of an individual making a $ 10, 000 cash deposit in a bank? A) The money supply would rise by $ 10, 000. B) The money supply would fall by $ 10, 000. C) The money supply would not be affected by the deposit. D) The money supply would fall, but by less than the $ 10, 000 deposit. Show Answer Correct Answer: C) The money supply would not be affected by the deposit. 21. By settling the mutual claims between banks, the Central Bank acts as a ..... A) Lender of last resort. B) Custodian of cash reserves. C) Clearing House. D) None of the above. Show Answer Correct Answer: C) Clearing House. 22. What is the significance of the lender of last resort function of central banks? A) It decreases the stability of the financial system. B) It encourages risky behavior by financial institutions. C) It provides emergency liquidity to financial institutions during times of crisis. D) It leads to inflation in the economy. Show Answer Correct Answer: C) It provides emergency liquidity to financial institutions during times of crisis. 23. What is the purpose of a savings account? A) The purpose of a savings account is to save money and earn interest on the deposited funds. B) The purpose of a savings account is to spend money and accumulate debt. C) The purpose of a savings account is to invest in stocks and bonds. D) The purpose of a savings account is to donate money to charity. Show Answer Correct Answer: A) The purpose of a savings account is to save money and earn interest on the deposited funds. 24. Barter refers to the system of A) Mutual exchange. B) Exchange of goods for money. C) Exchange of service for money. D) None of these. Show Answer Correct Answer: A) Mutual exchange. 25. Central Bank is a/an A) Apex Bank. B) Rural Bank. C) Regional bank. D) Commercial Bank. Show Answer Correct Answer: A) Apex Bank. ← 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