This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 61 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the Mauryan period ..... a silver coin was standard currency A) Pana. B) Desant. C) Shilling. D) Pound. Show Answer Correct Answer: A) Pana. 2. It is safer to keep your money here than at home under your mattress. A) Balance. B) Want. C) Inflation. D) Bank. Show Answer Correct Answer: D) Bank. 3. Money that has value because the Government declared that it is money. A) Fiat Money. B) Commodity Money. C) Currency. D) Coins. Show Answer Correct Answer: A) Fiat Money. 4. The government budget has a revenue deficit. This gets financed by:A. Borrowings B. Disinvestment C. Tax revenue D. Indirect Tax A) A and D. B) C and D. C) A and B. D) C and D. Show Answer Correct Answer: C) A and B. 5. In what situation might a commercial bank decide to increase its lending? A) When interest rates are low. B) When they have excess liquidity. C) All of the above. D) When there is high demand for loans. Show Answer Correct Answer: C) All of the above. 6. The main difficulty in a barter system is: A) Storage of money. B) Double coincidence of wants. C) Inflation. D) Excess supply of goods. Show Answer Correct Answer: B) Double coincidence of wants. 7. When it comes to saving money, what is a good rule of thumb? A) Keep most of your savings in your checking account. B) Put aside money for savings each month. C) Choose the savings account with the lowest interest rate. D) Put anything you can't afford on your credit card. Show Answer Correct Answer: B) Put aside money for savings each month. 8. What are some examples of low-risk investments? A) Some examples of low-risk investments include savings accounts, certificates of deposit (CDs), and government bonds. B) Stocks. C) High-yield bonds. D) Cryptocurrency. Show Answer Correct Answer: A) Some examples of low-risk investments include savings accounts, certificates of deposit (CDs), and government bonds. 9. Which of the following is the apex bank of India? A) SBI. B) RBI. C) HDFC. D) PNB. Show Answer Correct Answer: B) RBI. 10. In case of credit money A) Money value=commodity value. B) Money value>commodity value. C) Money value D) None of these. Show Answer Correct Answer: B) Money value>commodity value. 11. What do we call money we earn for doing work? A) Savings. B) Change. C) Income. D) Coins. Show Answer Correct Answer: C) Income. 12. ..... refer to those deposits in which amount is deposited with bank for a fixed period of time. A) Current Deposits. B) Time Deposits. C) Demand Deposits. D) Saving Deposits. Show Answer Correct Answer: B) Time Deposits. 13. La cuenta corriente A) Debit card. B) Savings account. C) To deposit money. D) Checking account. Show Answer Correct Answer: D) Checking account. 14. Carl wants a new computer. He goes to 6 different stores on the weekend comparing prices. Carl is using money as A) A store of value. B) A medium of exchange. C) Commodity money. D) A unit of account. Show Answer Correct Answer: D) A unit of account. 15. In an option contract for a bunch of shares Mr. A (buyer of shares) and Mr. B (seller of shares) agree to realize the contract on a future date. Mr. A sells the right to exercise the option contract to Mr. B. Which option will this be called? A) Put option. B) Call option. C) Forward option. D) None of the above. Show Answer Correct Answer: A) Put option. 16. What happens where there is an increase in the margin requirements? A) It reduces the borrowing capacity and money supply. B) Encourages people to borrow more and money supply rises. C) No change in money supply. D) None of these. Show Answer Correct Answer: A) It reduces the borrowing capacity and money supply. 17. Which of the following is NOT a type of loan mentioned in the Canadian financial system? A) Secured loan. B) Unsecured loan. C) Prime rate of interest. D) Bond loan. Show Answer Correct Answer: D) Bond loan. 18. What are the risks associated with banking? A) Credit risk, market risk, operational risk, liquidity risk, regulatory risk. B) Foreign exchange risk. C) Interest rate risk. D) Investment risk. Show Answer Correct Answer: A) Credit risk, market risk, operational risk, liquidity risk, regulatory risk. 19. A commercial bank sells $ 10k in securities. The reserve requirement is 10%. How much of the money can the bank lend? A) $ 10, 000. B) $ 9, 000. C) $ 1, 000. D) $ 0. Show Answer Correct Answer: A) $ 10, 000. 20. James, William, and Ethan are playing a game of 'Economy Masters'. They are discussing how the central bank controls the money supply in an economy. Can you help them answer this? A) Monetary policy. B) Trade policy. C) Exchange rate policy. D) Fiscal policy. Show Answer Correct Answer: A) Monetary policy. 21. Which option is a characteristics of money? A) Medium of exchange. B) Unit of account. C) Portability. D) Store of value. Show Answer Correct Answer: C) Portability. 22. ..... a system in which currency could be exchanged for a certain amount of gold. A) Legal tender. B) Gold Standard. C) FDIC. D) Specie. Show Answer Correct Answer: B) Gold Standard. 23. If LRR is 50%, the value of the deposit multiplier will be: A) 4. B) 10. C) 2. D) None of the above. Show Answer Correct Answer: C) 2. 24. Which of the characteristics of money can be defined as "able to be broken down into smaller parts" ? A) Uniformity. B) Durability. C) Portability. D) Divisibility. Show Answer Correct Answer: D) Divisibility. 25. Easily transferred from 1 person to another, to make the exchange of money for products easier. A) Durability. B) Portability. C) Divisibility. D) Scarcity. Show Answer Correct Answer: B) Portability. ← 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