This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 46 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ratio of total deposits that a commercial bank has to keep with reserve bank Of India is called: A) Statutory liquidity Ratio. B) Deposit Ratio. C) Case Reserve Ratio. D) Liquid Reserve Ratio. Show Answer Correct Answer: C) Case Reserve Ratio. 2. The firm will go bankrupt if it cannot meet its ..... A) Charges. B) Duties. C) Promises. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 3. Do checking accounts pay interest? A) No, never. B) Sometimes. C) Yes, always. D) None of the above. Show Answer Correct Answer: B) Sometimes. 4. How do changes in interest rates affect the economy? A) Changes in interest rates can impact the economy by influencing consumer spending, investment, and overall economic growth. B) Changes in interest rates have no impact on the economy. C) Changes in interest rates lead to a decrease in inflation. D) Changes in interest rates only affect government spending. Show Answer Correct Answer: A) Changes in interest rates can impact the economy by influencing consumer spending, investment, and overall economic growth. 5. Which of the following is not concern with banking organisation A) Bank rate. B) CRR. C) Fiscal Deficit. D) Credit Creation. Show Answer Correct Answer: C) Fiscal Deficit. 6. In the early 1800's, currency in the U.S. was issued by A) The Fed. B) Congress. C) A central bank. D) Banks. Show Answer Correct Answer: D) Banks. 7. Your take-home pay, or net income, is A) The amount you receive after benefits, such as vacation pay and health insurance, have been added. B) The amount you receive after taxes, insurance, or other costs have been subtracted. C) The total amount you earn. D) The amount of cash on hand you have. Show Answer Correct Answer: B) The amount you receive after taxes, insurance, or other costs have been subtracted. 8. What is the term used for coins and notes printed by the government? A) Deposits. B) Currency. C) Checks. D) Debit cards. Show Answer Correct Answer: B) Currency. 9. Why does the Federal Reserve alter monetary policy? A) To regulate the banking industry. B) To provide services to member banks. C) To enable banks to clear checks. D) To lessen the effect of natural business cycles. Show Answer Correct Answer: D) To lessen the effect of natural business cycles. 10. The ratio of total deposit that a commercial bank has been keep with the reserve Bank of India is called A) Statutory liquidity ratio. B) Deposit ratio. C) Cash reserve ratio. D) Legal reserve ratio. Show Answer Correct Answer: C) Cash reserve ratio. 11. A bank run (or run on the bank) is when many depositors, due to a fear of a bank failure, rush to withdraw their money. When it occurs at multiple banks, it is called bank panic. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. What is the main function of the Central Bank? A) Regulating currency and controlling credit creation. B) Accepting deposits from the public. C) Granting loans to investors. D) Selling foreign exchange. Show Answer Correct Answer: A) Regulating currency and controlling credit creation. 13. The buying an selling of government securities in financial markets is an example of A) Open market operations. B) Prime rate. C) Discount rate. D) Tight money policy. Show Answer Correct Answer: A) Open market operations. 14. Choose which equation is correct about money supply? A) M2 or Current money = M1+ REPOs. B) M2 or Current money = Paper currency +Quasi Money/ Near money. C) M2 or Current money = M1 +Quasi Money/ Near money. D) M2 or Current money = M1 + Fixed deposits in other banking institution. Show Answer Correct Answer: C) M2 or Current money = M1 +Quasi Money/ Near money. 15. Which of the following is not represented in the CAMELS ratings? A) Cash adequacy. B) Asset quality. C) Management quality. D) Liquidity. E) Sensitivity to market risk. Show Answer Correct Answer: A) Cash adequacy. 16. What is the function of money that allows people to measure the relative costs of goods and services? A) Interest rate. B) Unit of account. C) Medium of exchange. D) Store of value. Show Answer Correct Answer: B) Unit of account. 17. What is the significance of SLR in the banking system? A) Regulating the repo rate. B) Controlling credit creation. C) Setting credit quotas for different sectors. D) Increasing liquidity in the economy. Show Answer Correct Answer: B) Controlling credit creation. 18. What influences financial decisions? A) Values. B) Needs. C) Wants. D) All of these. Show Answer Correct Answer: D) All of these. 19. Money has what if it doesn't deteriorate when it is being handled? A) Scarcity. B) Divisibility. C) Durability. D) Portability. Show Answer Correct Answer: C) Durability. 20. ..... affects the purchasing power of money. A) Insurance. B) Investment. C) Inflation. D) None of the above. Show Answer Correct Answer: C) Inflation. 21. Signature of ..... appears on a 2000 currency note A) President. B) Prime minister. C) Governor. D) Chief minister. Show Answer Correct Answer: C) Governor. 22. Who has the right of note issue? A) Commercial Bank. B) Central Bank. C) Government. D) Co-operative Bank. Show Answer Correct Answer: B) Central Bank. 23. "To deposit" means A) To put money into your account. B) To withdraw money into your account. C) To cancel money into your account. D) To check money into your account. Show Answer Correct Answer: A) To put money into your account. 24. Why does a bank sometimes hold excess reserves? A) To be sure they can meet their customers' demands. B) To protect against high prices. C) To make check clearing easier. D) To keep from lending too much money. Show Answer Correct Answer: A) To be sure they can meet their customers' demands. 25. Imagine Benjamin, Scarlett, and Arjun are discussing the difference between a debit card and a credit card. Can you help them understand the difference? A) A debit card uses your own money, while a credit card allows you to borrow money. B) A debit card has a higher interest rate than a credit card. C) A debit card requires a credit check, while a credit card does not. D) A debit card offers rewards and cashback, while a credit card does not. Show Answer Correct Answer: A) A debit card uses your own money, while a credit card allows you to borrow money. ← 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