This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 44 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following institutions is most likely to purchase accounts receivable from businesses to provide immediate cash flow? A) Factoring companies. B) Pension funds. C) Life insurance companies. D) Venture capital firms. Show Answer Correct Answer: A) Factoring companies. 2. The speaker ..... (wymienia) ways of selling things. A) Changes. B) Outlines. C) Exchanges. D) Switches. Show Answer Correct Answer: B) Outlines. 3. Currency that must be accepted for payment by decree of government. A) Legal tender. B) Specie. C) Barter. D) Gold Standard. Show Answer Correct Answer: A) Legal tender. 4. If a consumers deposits $ 500 in the bank and the bank has to keep 10% in reserve, how much must they keep? A) $ 500. B) $ 50. C) $ 100. D) $ 450. Show Answer Correct Answer: B) $ 50. 5. Which of the following is not the main forms of money? A) Cash. B) Bank deposits. C) Central bank reserves. D) Gift certificate. Show Answer Correct Answer: D) Gift certificate. 6. How does the RBI ensure financial stability in the economy? A) By increasing taxes on all financial institutions. B) By eliminating all forms of currency in the economy. C) The RBI ensures financial stability through regulation, supervision, and monetary policy management. D) By allowing unregulated lending practices to flourish. Show Answer Correct Answer: C) The RBI ensures financial stability through regulation, supervision, and monetary policy management. 7. How do credit unions differ from traditional banks in their structure? A) They are formed by a group of individuals with common interests. B) They focus on safeguarding funds and estates. C) They specialize in international banking services. D) They are owned by government entities. Show Answer Correct Answer: A) They are formed by a group of individuals with common interests. 8. ..... pool risk by collecting premiums from a large group of people who want to protect themselves and/or their loved ones against a particular loss, such as a fire, car accident, illness, lawsuit, disability or death. A) Tabung Haji. B) Insurance companies. C) Socso. D) None of the above. Show Answer Correct Answer: B) Insurance companies. 9. How many Federal Reserve Banks are there in the United States? A) 5. B) 10. C) 12. D) 20. Show Answer Correct Answer: C) 12. 10. RBI was set up in ..... and nationalized in ..... A) 1937, 1950. B) 1935, 1949. C) 1937, 1949. D) 1949, 1935. Show Answer Correct Answer: B) 1935, 1949. 11. What's important to do before buying something online? A) Compare prices. B) Buy immediately. C) Ignore reviews. D) Forget the cost. Show Answer Correct Answer: A) Compare prices. 12. What is the currency deposit ratio (cdr)? A) Ratio of money held by the public in currency to that of money held in bank deposits. B) Ratio of money held by public in bank deposits to that of money held by public in currency. C) Ratio of money held in demand drafts to that of money held in treasury bonds. D) None of the above. Show Answer Correct Answer: A) Ratio of money held by the public in currency to that of money held in bank deposits. 13. ..... insures accounts at commercial banks for up to $ 250, 000 A) FDIC. B) NCUA. C) All the above. D) None of the above. Show Answer Correct Answer: A) FDIC. 14. A(n) ..... is a specific type of loan that is used to buy real estate. A) Mortgage. B) Fiat money. C) Commodity money. D) Savings and loan. Show Answer Correct Answer: A) Mortgage. 15. Which is NOT a function of commercial bank? A) Providing financial and tax planning advice. B) Print money. C) Providing insurance. D) Exchanging foreign currencies. Show Answer Correct Answer: B) Print money. 16. Types of money:A good whose value serves as the value of money. Gold coins are an example of commodity money. In most countries, commodity money has been replaced with fiat money. A) Commodity money. B) Fiat money. C) All the above. D) None of the above. Show Answer Correct Answer: A) Commodity money. 17. What function does a central bank fulfil? A) It prints and issues currency. B) It offers overdraft facilities to individuals. C) It operates deposit accounts. D) It raises taxation. Show Answer Correct Answer: A) It prints and issues currency. 18. Fiscal deficit is equal to A) Direct tax. B) Interest. C) Borrowings. D) All of these. Show Answer Correct Answer: C) Borrowings. 19. What is the role of a central bank in relation to commercial banks? A) To compete with them. B) To issue shares. C) To lend to them as a last resort. D) To manage their profits. Show Answer Correct Answer: C) To lend to them as a last resort. 20. High-powered money is also called: A) Net worth. B) Monetary base. C) SLR. D) Cashless money. Show Answer Correct Answer: B) Monetary base. 21. Credit control means A) Contraction of credit only. B) Extension of Credit only. C) Contraction and Extension of Credit. D) None of these. Show Answer Correct Answer: C) Contraction and Extension of Credit. 22. Ser gratis A) To be free of charge. B) Loans. C) Expensive. D) To pay with cash. Show Answer Correct Answer: A) To be free of charge. 23. What is money commonly accepted as in exchange for goods and services? A) A medium of exchange. B) A form of credit. C) A type of loan. D) A savings account. Show Answer Correct Answer: A) A medium of exchange. 24. Money supply consists of A) Currency. B) Deposit. C) Both. D) None. Show Answer Correct Answer: C) Both. 25. What type of bank account is typically used for daily transactions and comes with a debit card? A) Savings account. B) Loan account. C) Checking account. D) Credit account. Show Answer Correct Answer: C) Checking account. ← 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