This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 58 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... refers to the direct exchange of one set of goods or services for another. A) Currency. B) Barter. C) Greenbacks. D) Loan. Show Answer Correct Answer: B) Barter. 2. What do we need to buy things at a store? A) Money. B) Toys. C) Books. D) Crayons. Show Answer Correct Answer: A) Money. 3. RBI is also known as A) Bank of issue. B) Central bank. C) World bank. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 4. Statutory Liquidity Ratio (SLR) refers to reserves kept: A) In liquid form. B) As foreign currency. C) As physical gold. D) As paper receipts. Show Answer Correct Answer: A) In liquid form. 5. The number of times a unit of money exchanges hands during a unit period of time is known as: A) Velocity of circulation of money. B) Momentum of circulation of money. C) Count of circulation of money. D) Circulation of money. Show Answer Correct Answer: A) Velocity of circulation of money. 6. Money with intrinsic value that can have some other use is called A) Commodity money. B) Token money. C) Fiat money. D) Barter money. Show Answer Correct Answer: A) Commodity money. 7. What is the current central banking system of the United States called? A) National Bank. B) 1st Bank of the United States. C) Federal Deposit Insurance Corporation (FDIC). D) Federal Reserve System. Show Answer Correct Answer: D) Federal Reserve System. 8. Reverse repo rate: A) Generates interest income. B) Is increased to curb inflation. C) Is not a policy rate. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 9. Full bodied money is that money whose money value and commodity value are: A) Equal in the market. B) Declared as equal by the government. C) Different in the market. D) Declared as equal by the RBI. Show Answer Correct Answer: A) Equal in the market. 10. LRR and money creation have A) Negative relation. B) Positive relation. C) No relation. D) None of the above. Show Answer Correct Answer: A) Negative relation. 11. Who is the creator of credit in the banking system? A) Commercial banks. B) Central bank. C) All the above. D) None of the above. Show Answer Correct Answer: A) Commercial banks. 12. What is the relationship between transaction demand for money and nominal GDP? A) They are inversely related. B) They are positively related. C) They have no relationship. D) It depends on the interest rate. Show Answer Correct Answer: B) They are positively related. 13. Which of the following functions modern banks do not perform? A) Issue of letter of credit. B) Publishing of statistics. C) Handling of Foreign Exchange Reserves. D) Conducting Enquiry Survey. Show Answer Correct Answer: C) Handling of Foreign Exchange Reserves. 14. Saving accounts differ from checking accounts in that ..... A) Saving accounts have higher interest rates. B) Saving accounts have more fees. C) Saving accounts have unlimited transactions. D) Saving accounts have overdraft protection. Show Answer Correct Answer: A) Saving accounts have higher interest rates. 15. ..... refers to the money that people keeps in the bank A) Credits. B) Deposits. C) Loans. D) Withdrawals. Show Answer Correct Answer: B) Deposits. 16. The notes printed and issued are declared ..... throughout the country. A) Limited illegal money. B) Unlimited legal money. C) Medium of exchange. D) Unlimited legal tender. Show Answer Correct Answer: D) Unlimited legal tender. 17. ..... is the rate at which commercial banks borrow from central bank in emergency A) CRR. B) SLR. C) Bank rate. D) Reverse repo rate. Show Answer Correct Answer: C) Bank rate. 18. Name the credit-control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan A) Selective Credit Controls. B) Moral Suasion. C) Margin Requirements. D) Legal Reserve Requirements. Show Answer Correct Answer: C) Margin Requirements. 19. Currency should be durable. This means: A) You cannot light it on fire. B) It must be tough so it doesn't break. C) It should be cheap to mass produce. D) It should be silver or gold. Show Answer Correct Answer: B) It must be tough so it doesn't break. 20. Yardstick of economic value in exchanges A) Interest rate. B) Unit of account. C) All the above. D) None of the above. Show Answer Correct Answer: B) Unit of account. 21. What was the first economic system A) Cash money exchange. B) Gold exchange. C) Barter System. D) Capitalism. Show Answer Correct Answer: C) Barter System. 22. Financial Institution A) Any organization that provides services related to money. B) Nonprofit financial institution that is privately owned and provides banking services for its members. C) Financial institution that offers savings and loan services. D) Financial institution that does not accept deposits. Show Answer Correct Answer: A) Any organization that provides services related to money. 23. The tools and strategies the Federal Reserve uses to stabilize the economy is called? A) Fiscal Policy. B) Monetary Policy. C) Tight Money. D) Easy Money. Show Answer Correct Answer: B) Monetary Policy. 24. Describe the function of money as a unit of account. A) Money as a unit of account helps in measuring and comparing the value of goods and services. B) Money as a unit of account determines the quality of goods and services. C) Money as a unit of account is used for transportation purposes. D) Money as a unit of account is only applicable in the digital economy. Show Answer Correct Answer: A) Money as a unit of account helps in measuring and comparing the value of goods and services. 25. Which of the following is not the function of the commercial bank? A) Issue of paper notes. B) Acceptance of deposits. C) Advancing loans. D) Credit creation. Show Answer Correct Answer: A) Issue of paper notes. ← 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