This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 45 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why will a commercial bank increase its lending to customers? A) If it thinks that it will make profit. B) If it thinks that it is for the well-being of the customer. C) If it sees that a person is in need. D) If it thinks that it is for charitable cause. Show Answer Correct Answer: A) If it thinks that it will make profit. 2. A monetary standard under which the fiat money supply cannot be converted into gold or silver by its citizens A) Monetary standard. B) Legal tender. C) Treasury coin notes. D) Gold standard. E) Inconvertible fiat money standard. Show Answer Correct Answer: E) Inconvertible fiat money standard. 3. What is the purpose of an ATM? A) To allow users to apply for loans directly. B) The purpose of an ATM is to provide convenient access to banking services. C) To provide cash only during business hours. D) To serve as a physical bank branch. Show Answer Correct Answer: B) The purpose of an ATM is to provide convenient access to banking services. 4. An individual who has a surplus of rice which she wishes to exchange for clothing. If she is not lucky enough she may not be able to find another person who has the diametrically opposite demand for rice with a surplusof clothing to offer in exchange. This is Known as ..... A) Bater system. B) Double coincidence of wants. C) Problem of Double coincidence of wants. D) None of the above. Show Answer Correct Answer: C) Problem of Double coincidence of wants. 5. Marginal requirement is the difference between ..... A) Amount of loans and amount of deposits. B) Amount of assets mortgage and loan taken. C) Saving deposits and current deposits. D) None. Show Answer Correct Answer: B) Amount of assets mortgage and loan taken. 6. What are the advantages of Barter System? A) Simple System. B) More Mutual Co-operation. C) No Economic Disparities. D) All the above. Show Answer Correct Answer: D) All the above. 7. What is the difference between quantitative and qualitative credit control? A) Quantitative credit control is only used for large businesses. B) Qualitative credit control relies solely on statistical analysis. C) Quantitative credit control ignores financial data completely. D) Quantitative credit control uses numerical data for management, while qualitative credit control focuses on non-numerical factors and judgment. Show Answer Correct Answer: D) Quantitative credit control uses numerical data for management, while qualitative credit control focuses on non-numerical factors and judgment. 8. Banking that uses apps on devices such as smartphones, tablets, etc. A) Online. B) Mobile. C) Ibanking. D) Cyberbanking. Show Answer Correct Answer: B) Mobile. 9. What did the government do to help slow/end the Great Recession? A) Allowed the banks to fail to teach them a lesson. B) Charged banks $ 700 Billion to fix the damage they caused. C) Authorized a $ 700 Billion bailout of the banks and auto industry. D) Created a number of new banks to strengthen the economy. Show Answer Correct Answer: C) Authorized a $ 700 Billion bailout of the banks and auto industry. 10. Why do we save money in a bank A) Money is safer in bank. B) Money in the bank grow. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: C) Both a and b. 11. The total value of financial assets in the economy that are considered money. These are several different measures of the money supply, called monetary aggregates. A) Money Supply. B) Gold Standard. C) National Bank. D) Bank. Show Answer Correct Answer: A) Money Supply. 12. Which is not the function if central bank A) Banker to the government. B) Controller of the money supply. C) Bankers bank. D) Overdraft facility. Show Answer Correct Answer: D) Overdraft facility. 13. It allows us to trade A) Means of exchange. B) Unit of Account. C) Store of Value. D) Legal Tender. Show Answer Correct Answer: A) Means of exchange. 14. What are credit unions (caisses populaires)? A) Institutions that safeguard funds and estates. B) Cooperative savings and lending institutions formed by a group of individuals with common interests. C) Organizations that provide investment advice to individuals. D) Banks that specialize in international transactions. Show Answer Correct Answer: B) Cooperative savings and lending institutions formed by a group of individuals with common interests. 15. What does "cut back" mean? A) Spend more. B) Increase expenses. C) Decrease expenses. D) Charge. Show Answer Correct Answer: C) Decrease expenses. 16. Why is money considered essential? A) It complicates exchanges. B) It plays a crucial role in facilitating exchange. C) It is not widely accepted. D) It is only used in banks. Show Answer Correct Answer: B) It plays a crucial role in facilitating exchange. 17. What is saving? A) Amont of money used for purchasing items. B) Setting aside money for future use. C) Amount of money a worker earns. D) Amount of money spent in a day. Show Answer Correct Answer: B) Setting aside money for future use. 18. What is "credit creation" in banking? A) Printing new banknotes. B) The process by which banks increase the money supply through lending. C) Issuing government debt. D) Setting interest rates. Show Answer Correct Answer: B) The process by which banks increase the money supply through lending. 19. During a history class, Adi learned about the origins of banking. The teacher explained that the term "bank" has a fascinating history. From which language does the term "bank" originate, and what was its original meaning in the context of early banking activities? A) Greek, meaning "marketplace" . B) Latin, meaning "coin" . C) Italian, meaning "bench" . D) French, meaning "exchange" . Show Answer Correct Answer: C) Italian, meaning "bench" . 20. What is the purpose of moral suasion as a policy tool of the Central Bank? A) To persuade commercial banks to change their lending behavior. B) To regulate interest rates. C) To control inflation. D) To stabilize the stock market. Show Answer Correct Answer: A) To persuade commercial banks to change their lending behavior. 21. When was first Indian rupee printed A) 30th November, 1917. B) 14th November, 1912. C) 22nd August, 1947. D) 14th December, 1904. Show Answer Correct Answer: A) 30th November, 1917. 22. Collect money in the form of deposits from customers and by issuing bank CDs and bonds. Take care of their customers payment services. Earn money by giving interest bearing loans to customers and by investing money in revenue giving assets. A) Central bank. B) Commercial bank. C) All the above. D) None of the above. Show Answer Correct Answer: B) Commercial bank. 23. A saving account in a bank represents the function of money: A) Store of value. B) A medium of exchange. C) A standard for deferred payments. D) A measure of value. Show Answer Correct Answer: A) Store of value. 24. ..... is the effect of rise in rate of SLR on creation of credit. A) Decrease in Credit Creation. B) Increase in Credit Creation. C) No Effect. D) None of the above. Show Answer Correct Answer: A) Decrease in Credit Creation. 25. What are the earliest forms of money used in human history? A) Cloth, wood, and glass. B) Plastic, paper, and electronic currency. C) The earliest forms of money used in human history include commodities such as shells, beads, and livestock, as well as precious metals like gold and silver. D) Stones, leaves, and feathers. Show Answer Correct Answer: C) The earliest forms of money used in human history include commodities such as shells, beads, and livestock, as well as precious metals like gold and silver. ← 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