This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 53 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Time deposit is a bank deposit from which withdrawals may be made at a ..... future date of maturity . A) Random. B) Specified. C) Required. D) Convertible. Show Answer Correct Answer: B) Specified. 2. Major economic crises such as the Great Depression of the 1930's, led to expansion of the Fed's role in the U.S. banking system and with managing the U.S. economy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 3. Which form of money is issued by the central bank? A) Fiat money. B) Commodity money. C) Token money. D) Digital money. Show Answer Correct Answer: A) Fiat money. 4. Which bank operate in public interest without profit motive A) SBI. B) RBI. C) UBI. D) PNB. Show Answer Correct Answer: B) RBI. 5. The ..... guarantees your bank deposits up to $ 250, 000? A) Chinese Government. B) FDIC (Federal Deposit Insurance Corporation). C) The President. D) The Bank. Show Answer Correct Answer: B) FDIC (Federal Deposit Insurance Corporation). 6. In the 1990s, the Russian people lost confidence in the value of the ruble, and many were no longer willing to sell goods and services in exchange for Russian currency. Which characteristic of money did the Russian currency lack? A) Acceptability. B) Uniformity. C) Limited supply. D) Durability. Show Answer Correct Answer: A) Acceptability. 7. Financial institutions that accepted the deposits of small investors A) Federal Reserve System. B) Thrift institution. C) Mutual savings bank. D) Credit union. E) Savings and loan association. Show Answer Correct Answer: B) Thrift institution. 8. What does liquidity refer to in banking? A) The ability to accept deposits. B) The ability to lend money. C) The ability to turn an asset into cash quickly without loss. D) The ability to earn high interest. Show Answer Correct Answer: C) The ability to turn an asset into cash quickly without loss. 9. Treasury bill A) Security that pays interest over terms ranging from two to ten years. B) Security that matures in a year or less. C) Money is used in exchange for goods and services needed by individuals, businesses, and governments. D) Money is a common measure of what something is worth or price of a good or service. Show Answer Correct Answer: B) Security that matures in a year or less. 10. With money it is possible to buy goods on credit. which function of money it shows? A) Store of value. B) Standard of deferred payments. C) Unit of account. D) None of the above. Show Answer Correct Answer: B) Standard of deferred payments. 11. The receipts of reputed goldsmiths or paper money were called A) Depth money. B) Treasuries. C) Hundis. D) Bonds. Show Answer Correct Answer: C) Hundis. 12. What is the barter system? A) Exchanging goods directly for other goods. B) Using digital payment methods. C) Exchanging goods for money. D) A type of bank account. Show Answer Correct Answer: A) Exchanging goods directly for other goods. 13. If governments print too much money and flood the market with currency it causes ..... This is bad for the overall economy because prices will rise quickly and savings will be lost. A) Tariffs. B) Deregulation. C) Inflation. D) More demand for money. Show Answer Correct Answer: C) Inflation. 14. Which of the following is NOT a function of a central bank? A) Issuing currency. B) Lending to the public. C) Controlling credit. D) Acting as a banker to the government. Show Answer Correct Answer: B) Lending to the public. 15. CRR stands for A) Credit reserve ratio. B) Cash reserve ratio. C) Commercial reserve ratio. D) Central reserve ratio. Show Answer Correct Answer: B) Cash reserve ratio. 16. If a man is legally separated from his wife, is he still ..... for her debts? A) Liable. B) Answerable. C) Chargeable. D) Bound. Show Answer Correct Answer: A) Liable. 17. Jamin keeps a part of his earnings as cash in a safety deposit box, which means he is employing money as ..... A) A store of value. B) A medium of exchange. C) A measure of value. D) None of the above. Show Answer Correct Answer: A) A store of value. 18. Securities firm A) Financial institution that is involved in trading securities in financial markets. B) Financial institution that provides services for businesses. C) Financial institution that makes money by issuing loans. D) Bank account that allows the account owner to make deposits, write checks, and withdraw money. Show Answer Correct Answer: A) Financial institution that is involved in trading securities in financial markets. 19. What's the name of the piece of paper that proves you bought or paid for something? A) Recipe. B) Receipt. C) Resit. D) Revisit. Show Answer Correct Answer: B) Receipt. 20. The time and money spent in carrying out financial transactions are called: A) Liquidity Services. B) Transaction costs. C) Economies of scale. D) None of the above. Show Answer Correct Answer: B) Transaction costs. 21. What are the three main functions of money? A) Barter, trade, and investment. B) Currency, inflation, and interest rates. C) Means of production, standard of living, and economic growth. D) Medium of exchange, unit of account, and store of value. Show Answer Correct Answer: D) Medium of exchange, unit of account, and store of value. 22. ComnercialBank create credit A) Out of nothing. B) On the basis of securities. C) On the basis of their assets. D) On the basis of deposits. Show Answer Correct Answer: D) On the basis of deposits. 23. Suppose the required reserve ratio is 20% and there is no currency drain. Then a $ 100 increase in the monetary base results in the banking system increasing the quantity of money by A) $ 80. B) $ 400. C) $ 1, 000. D) $ 500. E) $ 100. Show Answer Correct Answer: D) $ 500. 24. Money by government decree A) Money. B) Medium of exchange. C) Measure of value. D) Fiat money. E) Specie. Show Answer Correct Answer: D) Fiat money. 25. The Value of credit multiplier will be high when Legal Reserve Ratio is: A) Low. B) High. C) Zero. D) Infinity. Show Answer Correct Answer: A) Low. ← 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