This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 47 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money uses as A) Medium of exchange. B) Unit of value. C) Store of value. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. All of the following are assets except: A) Buildings. B) Credit card. C) Factories. D) Furniture. Show Answer Correct Answer: B) Credit card. 3. Things of economic value that a person or company owns A) Assets. B) Debits. C) All the above. D) None of the above. Show Answer Correct Answer: A) Assets. 4. The security feature in U.S. money that has been the most difficult to counterfeit. A) Tinting the paper. B) Watermarks. C) Security Strip. D) All of the above. Show Answer Correct Answer: C) Security Strip. 5. What do we call the machine that gives us money from our bank account? A) Vending machine. B) Cash register. C) Computer. D) ATM. Show Answer Correct Answer: D) ATM. 6. What are M1 and M2? A) Fiat money. B) Specie. C) Currency. D) Money supplies. Show Answer Correct Answer: D) Money supplies. 7. Mechanism designed to keep the money supply portable, durable, divisible, and limited in supply A) Monetary standard. B) Legal tender. C) Treasury coin notes. D) Gold standard. E) Inconvertible fiat money standard. Show Answer Correct Answer: A) Monetary standard. 8. Which statement about a country's banks is correct? A) Commercial banks hold the financial accounts of the government. B) Commercial banks offer loans to consumers and firms. C) The central bank sets the government's tax and spending policies. D) The central bank supplies foreign currency to members of the public. Show Answer Correct Answer: B) Commercial banks offer loans to consumers and firms. 9. Money multiplier is A) 1/ CRR. B) 1/ SLR. C) 1/ LRR. D) NONE OF THESE. Show Answer Correct Answer: C) 1/ LRR. 10. What is the place responsible for creating and printing U.S. paper money? A) U.S. Mint. B) Federal Reserve Bank. C) Bureau of Engraving and Printing. D) FDIC. Show Answer Correct Answer: C) Bureau of Engraving and Printing. 11. Coins and paper money printed by the government A) Currency. B) Interest. C) Deposit. D) Money. Show Answer Correct Answer: A) Currency. 12. The pronunciation of 'debt' A) Deet. B) Det. C) Debt. D) Dept. Show Answer Correct Answer: B) Det. 13. Only central bank can print money. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. A good tax should be all of these but? A) Simple. B) Efficient. C) Equal. D) Overbearing. Show Answer Correct Answer: D) Overbearing. 15. Ethan, Harper, and Anika are having a debate. They are trying to figure out the purpose of a savings account. Can you help them? A) Ethan thinks it's to invest money and earn interest. B) Harper believes it's to borrow money and earn interest. C) Anika suggests it's to save money and earn interest. D) Or is it to spend money and earn interest, as their friend suggested?. Show Answer Correct Answer: C) Anika suggests it's to save money and earn interest. 16. Which of the following is the NOT a power given to the federal government by the National Banking Acts of 1863 and 1864? A) The power to require banks to hold adequate gold and silver reserves to cover bank notes. B) The power to issue a single national currency. C) The power to charter banks. D) The power to help government carry out its power to tax, regulate interstate and foreign commerce. Show Answer Correct Answer: D) The power to help government carry out its power to tax, regulate interstate and foreign commerce. 17. Maximum credit that the commercial banks can legally create depends on their A) Gold reserves. B) Cash Reserves with the RBI. C) SLR. D) Term deposits. Show Answer Correct Answer: B) Cash Reserves with the RBI. 18. Statistical definitions of Supply of Money:M2 + repurchase agreements, money market fund shares, and units as well as debt securities with a maturity of up to and including two years. A) M1. B) M2. C) M3. D) None of the above. Show Answer Correct Answer: C) M3. 19. Which one is wrong about supply money A) Not influence by the interest rate. B) Influence by transaction motive. C) Involves government intervention. D) None of the above. Show Answer Correct Answer: B) Influence by transaction motive. 20. What type of banking focuses on investment and wealth management? A) Wealth management banking. B) Corporate banking. C) Commercial banking. D) Retail banking. Show Answer Correct Answer: A) Wealth management banking. 21. What is one of the primary functions of money? A) Measure of wealth. B) Unit of account. C) Store of value. D) Medium of exchange. Show Answer Correct Answer: D) Medium of exchange. 22. Which option is not correct? A) Bank rate is the rate at which commercial bank borrow money from RBI. B) Central bank control money supply in the economy. C) Commercial bank sell securities on the behalf of government. D) Sum of CRR and SLR is LRR. Show Answer Correct Answer: C) Commercial bank sell securities on the behalf of government. 23. Which of the following is NOT required to open a checking account? A) Proof of identity. B) Proof of address. C) Social security number. D) Minimum age requirement. Show Answer Correct Answer: D) Minimum age requirement. 24. The simple interest formula is I=Prt. The P represents the principal. What is PRINCIPAL in an economic sense? A) The amount of money borrowed or deposited. B) The percent interest for his year. C) The head administrator of a school. D) The amount the bank owes you for being a customer at their bank. Show Answer Correct Answer: A) The amount of money borrowed or deposited. 25. Handlowac A) Sell. B) Trade. C) Sold out. D) Marketing. Show Answer Correct Answer: B) Trade. ← 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