This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 59 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The system in which Goods were exchanged for goods is called A) Barter system. B) Monetary system. C) Both. D) None. Show Answer Correct Answer: A) Barter system. 2. What is the function of Moral Suasion in credit control? A) Regulating margin requirements. B) Advising commercial banks to follow directives. C) Setting credit quotas for different sectors. D) Direct action against commercial banks. Show Answer Correct Answer: B) Advising commercial banks to follow directives. 3. I have been setting aside $ 100 a month for my children to have money to go to college. This idea is known as what? A) Savings. B) Credit. C) Income. D) Debt. Show Answer Correct Answer: A) Savings. 4. Barter means people trade goods for other goods. What is a problem with barter? A) You need someone who wants what you have. B) It always uses coins. C) It gives extra toys. D) None of the above. Show Answer Correct Answer: A) You need someone who wants what you have. 5. If the reserve requirement is 10% and I put in $ 100, what is the amount a bank can loan out? A) $ 80. B) $ 90. C) $ 72. D) .9. Show Answer Correct Answer: B) $ 90. 6. If Reserve Deposit Ratio is 12.5%, the value of Money Multiplier will be: A) 2. B) 5. C) 8. D) 10. Show Answer Correct Answer: C) 8. 7. Fiat money is money which ..... A) Its value is not fixed to the price of gold. B) Has a face value equals to its metallic value, as well as has full support value . C) Has no intrinsic value, such as a RM50 bill. D) Has a higher face value compared to its metallic value. Show Answer Correct Answer: C) Has no intrinsic value, such as a RM50 bill. 8. A(n) ..... bank accepts deposits and is covered by deposit insurance. A) Commercial. B) Central. C) Investment. D) Savings and Loan. Show Answer Correct Answer: A) Commercial. 9. Barter trading will occur when there is ..... A) Singularity of interest. B) Bargaining intermediary. C) Double coincidence of wants. D) Sufficient supply of cash. Show Answer Correct Answer: C) Double coincidence of wants. 10. What is the purpose of Rationing of Credit as a credit control measure? A) Regulating the repo rate. B) Encouraging speculative activities. C) Fixing credit quotas for different activities. D) Increasing liquidity in the economy. Show Answer Correct Answer: C) Fixing credit quotas for different activities. 11. How does a loan work? A) A loan works by providing funds to a borrower who repays the amount with interest over time. B) A loan is a gift that does not need to be repaid. C) A loan is an investment that earns dividends. D) A loan is a type of insurance policy. Show Answer Correct Answer: A) A loan works by providing funds to a borrower who repays the amount with interest over time. 12. Direct tax is called direct because it is collected directly from: A) The producers on goods produced. B) The sellers on goods sold. C) The buyers of goods. D) The income earners. Show Answer Correct Answer: D) The income earners. 13. How was Bank Indonesia (BI) established, and what was its primary function? A) It was founded as a private commercial bank in 1951. B) It was formed through the nationalization of De Javasche Bank in 1951, functioning as a central and circulation bank. C) It was created by merging several small regional banks in 1946. D) It was established by a foreign government to manage Indonesia's finances. Show Answer Correct Answer: B) It was formed through the nationalization of De Javasche Bank in 1951, functioning as a central and circulation bank. 14. Currency issue by RBI is A) Limited legal tender. B) Unlimited legal tender. C) Both. D) None. Show Answer Correct Answer: B) Unlimited legal tender. 15. The businessman shopkeeper, companies and traders have ..... account in the banks A) Basic Saving Bank Deposit Account. B) Saving Bank Account. C) Current Account. D) Small Account. Show Answer Correct Answer: C) Current Account. 16. Which of the following is legal tender A) Demand deposits. B) Time deposits. C) Cheque. D) Currency notes and coins. Show Answer Correct Answer: D) Currency notes and coins. 17. What are the benefits of saving money? A) Higher interest rates on loans. B) Increased spending power. C) The benefits of saving money include financial security, investment opportunities, emergency funds, and achieving financial goals. D) Immediate gratification from purchases. Show Answer Correct Answer: C) The benefits of saving money include financial security, investment opportunities, emergency funds, and achieving financial goals. 18. What is a mortgage used to purchase? A) Car. B) Real estate. C) College tuition. D) Business expenses. Show Answer Correct Answer: B) Real estate. 19. I'm an institution which performs the function of accepting deposits, lending funds & making an investment with the main aim of profit maximization.What am I? A) Commercial Bank. B) Central Bank. C) Government. D) None of these. Show Answer Correct Answer: A) Commercial Bank. 20. What is the primary function of CRR in the banking sector? A) Accepting deposits and granting loans. B) Regulating the repo rate. C) Fixing credit quotas for different activities. D) Controlling credit creation. Show Answer Correct Answer: D) Controlling credit creation. 21. The U.S. went on the gold standard in ..... and then went off the gold standard in ..... A) 1787, 1811. B) 1863, 1876. C) 1900, 1933. D) 1941, 1945. Show Answer Correct Answer: C) 1900, 1933. 22. Which of the following sends a message to the bank to transfer money directly from your checking account into the store's bank account? A) Debit card. B) Credit card. C) Goldsmith note. D) Promissory note. Show Answer Correct Answer: A) Debit card. 23. What is the main function of money in a modern economy? A) To act as a medium of exchange. B) To act as a store of value. C) To act as a unit of account. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. The business activity where money deposits are collected and transferred from one person to another A) Investing. B) Saving. C) Banking. D) All. Show Answer Correct Answer: C) Banking. 25. Which physical property of money makes flexible pricing possible? A) Durability. B) Portability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: C) Divisibility. ← 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