This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 51 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main purpose of Bank Negara Malaysia requires to the commercial banks keep statutory reserve to ..... A) Block profits of commercial banks. B) Control the commercial banks to finance. C) Ensure that commercial banks have sufficient liquidity. D) Facilitate the commercial bankto clear the cheque customers. Show Answer Correct Answer: C) Ensure that commercial banks have sufficient liquidity. 2. Which of the following financial institutions does NOT have to meet minimum reserve ratios?i. the Fedii. commercial banksiii. credit unions A) Iii only. B) I, ii, and iii. C) I only. D) Ii and iii. E) Ii only. Show Answer Correct Answer: C) I only. 3. Which one is the example of commercial bank in Malaysia? A) Federal Reserves. B) Bank Negara. C) Public Bank. D) Malaysia Bank. Show Answer Correct Answer: C) Public Bank. 4. Which of the following is not a function of central bank A) Banker's supervisor. B) Lender of last resort. C) Money creation. D) Controller of credit. Show Answer Correct Answer: C) Money creation. 5. Name three banking services provided to customers. A) Investment portfolios. B) Insurance policies. C) Savings accounts, loans, credit cards. D) Checking accounts. Show Answer Correct Answer: C) Savings accounts, loans, credit cards. 6. If you are going to change currency, what do you need to know? A) CVC. B) Exchange rate. C) Financial accounts. D) PIN. Show Answer Correct Answer: B) Exchange rate. 7. What is the relationship between the central bank and commercial banks? A) The central bank only provides loans to individuals, not commercial banks. B) Commercial banks are independent of the central bank's regulations. C) The central bank supervises and supports commercial banks, ensuring financial stability and liquidity. D) The central bank competes with commercial banks for customers. Show Answer Correct Answer: C) The central bank supervises and supports commercial banks, ensuring financial stability and liquidity. 8. Which of the following is a function of commercial banks? A) Issuing currency. B) Managing national debt. C) Accepting deposits. D) Controlling inflation. Show Answer Correct Answer: C) Accepting deposits. 9. Which of the following is a characteristic of money, NOT a function? A) Medium of exchange. B) Portability. C) Store of value. D) Unit of account. Show Answer Correct Answer: B) Portability. 10. Which of these is not a function of Central Bank A) Accepting deposits of general public. B) Custodian of Foreign Exchange Reserves. C) Banker's Bank. D) Currency Authority. Show Answer Correct Answer: A) Accepting deposits of general public. 11. Main function of money is A) Liquidity. B) Solidness. C) All the above. D) None of the above. Show Answer Correct Answer: A) Liquidity. 12. To smoothen the transaction, an intermediate good is necessary which is acceptable to both parties. Such a good is called ..... A) Substitute good. B) Complimentary good. C) Money. D) All of the above. Show Answer Correct Answer: C) Money. 13. What paper do you receive after you buy something in a store A) Bill. B) Slip. C) Receipt. D) Ticket. Show Answer Correct Answer: C) Receipt. 14. The percentage of demand deposits which the commercial banks are legally required to maintain as their liquid assets is called: A) CRR. B) SLR. C) Repo rate. D) Reverse repo rate. Show Answer Correct Answer: B) SLR. 15. What are the advantages of using a debit card? A) Limited acceptance at retailers. B) High interest rates on purchases. C) Automatic credit line increase with usage. D) Advantages of using a debit card include direct access to funds, lower fees, easy expense tracking, and no debt accumulation. Show Answer Correct Answer: D) Advantages of using a debit card include direct access to funds, lower fees, easy expense tracking, and no debt accumulation. 16. Which is the Agency Function of Commercial Banks? A) Advancing Loans. B) Accepting Deposits. C) Act as Trustee. D) Locker Facility. Show Answer Correct Answer: C) Act as Trustee. 17. The term "liquidity" in banking refers to: A) Ability to meet long-term obligations. B) Ability to meet short-term obligations. C) Profitability of the bank. D) None of the above. Show Answer Correct Answer: B) Ability to meet short-term obligations. 18. Which of the following is a function of commercial bank? A) Lender of last resort. B) Accepting deposits. C) Printing money. D) Providing regulatory services for other banks. Show Answer Correct Answer: B) Accepting deposits. 19. ..... refers to the amount of money borrowed. A) Interest. B) Default. C) Principal. D) Fiat money. Show Answer Correct Answer: C) Principal. 20. Which of the statements gives a true picture of the effect of lowering the cash reserve ratio by the central bank of a county A) The lending capacity of commercial banks will increase. B) The lending capacity of commercial banks will decrease. C) The lending capacity of commercial banks may increase or decrease. D) There is no effect on the lending capacity of commercial banks. Show Answer Correct Answer: A) The lending capacity of commercial banks will increase. 21. What is the purpose of the Statutory Liquidity Ratio (SLR)? A) To limit the amount of credit creation by banks. B) To control inflation. C) To encourage savings. D) To stabilize the economy. Show Answer Correct Answer: A) To limit the amount of credit creation by banks. 22. In India, the central bank is: A) Federal reserve system. B) Federal system. C) Reserve bank of India. D) Both (a) and (b). Show Answer Correct Answer: C) Reserve bank of India. 23. Each of the following FED actions will contract the money supply except A) Raise the reserve ratio. B) Raise the discount rate. C) Raise the Federal Funds rate. D) Buy bonds. Show Answer Correct Answer: D) Buy bonds. 24. Primary deficit=fiscal deficit ..... A) Loan. B) Interest payments. C) Borrowings. D) None of these. Show Answer Correct Answer: B) Interest payments. 25. The main liability of a commercial bank is: A) Loans. B) Deposits. C) Furniture. D) Bonds. Show Answer Correct Answer: B) Deposits. ← 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