This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 60 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which bank publishes Indian currency? A) RBI. B) Commercial Banks. C) Cooperative Banks. D) None of these. Show Answer Correct Answer: A) RBI. 2. The maximum number of withdrawals in a month allowed in basic saving bank deposit account (BSBDA) is A) 10. B) 6. C) 5. D) 4. Show Answer Correct Answer: D) 4. 3. The relationship between the value of the deposit multiplier and the value of LRR is A) Direct. B) Inverse. C) There is no relationship between them. D) None of the above. Show Answer Correct Answer: B) Inverse. 4. Which of the following functions are performed by the commercial banks? A) Issuance of currency notes. B) Rediscounting of bills. C) Preparation of monetary policy. D) Credit creation. Show Answer Correct Answer: D) Credit creation. 5. What will be the best way to fight the slowdown brought by covid 19? A) Increase in SLR. B) Selling of government bonds. C) Decrease in repo rate. D) Increase in CRR. Show Answer Correct Answer: C) Decrease in repo rate. 6. Geld abheben A) To withdraw money. B) To transfer money. C) To lend money. D) To borrow money. Show Answer Correct Answer: A) To withdraw money. 7. You have invested $ 500 at 9 percent interest. According to the Rule of 72, how soon will the money double in value? (72/r = time) A) 4 years. B) 6 years. C) 8 years. D) 12 years. Show Answer Correct Answer: C) 8 years. 8. With LendUp you can ..... for a loan in as little as five minutes. A) Pay. B) Reduce. C) Apply. D) None of the above. Show Answer Correct Answer: C) Apply. 9. A 30-year bond is a more LIQUID asset compared to a 6-month treasury bill A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. Rs. 10 note is issued by A) SBI. B) RBI. C) Government of India. D) Ministry of Finance. Show Answer Correct Answer: B) RBI. 11. Which would be the best inflation rate? A) -4%. B) 3%. C) 15%. D) None of the above. Show Answer Correct Answer: B) 3%. 12. What is the impact of monetary policy on inflation? A) Interest rates do not influence the money supply. B) Monetary policy can increase or decrease inflation by adjusting interest rates and controlling the money supply. C) Inflation is solely determined by government spending. D) Monetary policy has no effect on inflation. Show Answer Correct Answer: B) Monetary policy can increase or decrease inflation by adjusting interest rates and controlling the money supply. 13. A market stall = ..... A) Bazar. B) Kasa. C) Lada. D) Stragan. Show Answer Correct Answer: D) Stragan. 14. When people say money is used as a 'store of value', what do they mean? A) It can be traded and exchanged easily, and split into different amounts easily. B) It's a way of comparing the relative value of different things. C) It can be saved and used at some point in the future. D) None of the above. Show Answer Correct Answer: C) It can be saved and used at some point in the future. 15. The demand curve for money ..... A) Shows the amount of money balances that businesses wish hold at various interest rates. B) Reflects the open market operations policy of the Central Bank. C) Shows the amount of money individuals and businesses wish to hold at various price levels. D) Reflects the discount rate policy of the Central Bank. Show Answer Correct Answer: D) Reflects the discount rate policy of the Central Bank. 16. Which of the following statements about the Great Depression is FALSE? A) Thousands of banks failed. B) Banking reforms followed the Great Depression. C) Runs on banks were common. D) A new banking system was created. Show Answer Correct Answer: D) A new banking system was created. 17. When you buy something online, what should you ask a parent to help you with? A) Reading reviews. B) Choosing colors. C) Using a credit card. D) Finding pictures. Show Answer Correct Answer: C) Using a credit card. 18. Dana is an artist and Poppy is a carpenter. Dana agrees to paint a portrait of Poppy's family in exchange for a table created by Poppy. How did Dana and Poppy pay for the goods in the transaction? A) Debit card. B) Money. C) Bartering. D) Currency. Show Answer Correct Answer: C) Bartering. 19. What is a family most likely to do if they want to purchase a home? A) Use a credit card. B) Get a mortgage. C) Open a checking account. D) Purchase a certificate of deposit. Show Answer Correct Answer: B) Get a mortgage. 20. What is a debit card? A) Plastic card that used to connect to bank accounts. B) Plastic card only used with specific stores. C) Used to borrow money like a credit card. D) None of the above. Show Answer Correct Answer: A) Plastic card that used to connect to bank accounts. 21. Money must be scarce. A) Limited Supply. B) Medium of Exchange. C) Store of Value. D) Fiat Money. Show Answer Correct Answer: A) Limited Supply. 22. ..... your card and ..... your PIN. A) Put / enter. B) Install / write. C) Insert / key in. D) Put / type. Show Answer Correct Answer: C) Insert / key in. 23. The function of money that provides a means for comparing the values of goods and services. A) Unit of Account. B) Store of Value. C) Medium of Exchange. D) Acceptability. Show Answer Correct Answer: A) Unit of Account. 24. How do banks earn money from loans? A) Banks earn money by charging fees for account maintenance. B) Banks earn money from loans by charging interest on the borrowed amount. C) Banks earn money by offering free loans to customers. D) Banks earn money by investing in stocks and bonds. Show Answer Correct Answer: B) Banks earn money from loans by charging interest on the borrowed amount. 25. 1 of 3 functions of money allowing people to preserve value for future use. A) Store of value. B) Divisibility. C) Portability. D) Measure of value. Show Answer Correct Answer: A) Store of value. ← 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