This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 8 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do bank notes often used as money? A) They have an intrinsic value. B) They are durable. C) They are generally acceptable. D) They are portable. Show Answer Correct Answer: C) They are generally acceptable. 2. What is the name of Central Bank in India? A) SBI. B) RBI. C) PNB. D) None of the above. Show Answer Correct Answer: B) RBI. 3. A savings account is more LIQUID than a residential real estate A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 4. Deposit A) Money placed into an account. 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) Money placed into an account. 5. What is the main problem with using cattle as money? A) They are not scarce. B) They are not durable. C) They are not divisible. D) They are not portable. Show Answer Correct Answer: C) They are not divisible. 6. Money serves as a ..... , or means through which goods and services can be exchanged. A) Store of value. B) Medium of exchange. C) All the above. D) None of the above. Show Answer Correct Answer: B) Medium of exchange. 7. Barter system is ..... A) Exchange of goods with other goods. B) Demand of one meets supply. C) Exchange of ideas. D) Note of the above. Show Answer Correct Answer: A) Exchange of goods with other goods. 8. Operating ..... include salaries, other payments to staff and banking administrative costs. A) Profitable. B) Expenses. C) Loan. D) None of the above. Show Answer Correct Answer: B) Expenses. 9. A bond will increase in value if A) Interest rates decrease. B) Interest rates increase. C) The company files bankruptcy. D) The government increases it's debt. Show Answer Correct Answer: A) Interest rates decrease. 10. A(n) ..... entitles its holder to buy goods and services based on the holder's promise to pay for these goods and services. A) Debit card. B) Iou. C) Goldsmith note. D) Cedit card. Show Answer Correct Answer: D) Cedit card. 11. Demand deposits include A) Saving account deposits and fixed deposits. B) Saving account deposits and current account deposits. C) Current account deposits and fixed deposits. D) All types of deposits. Show Answer Correct Answer: B) Saving account deposits and current account deposits. 12. Which of the following is NOT an example of a liquid asset? A) Cash. B) Savings account. C) Certificate of Deposit. D) A checking account. Show Answer Correct Answer: C) Certificate of Deposit. 13. What is one difference between Banks and Credit Unions? A) Banks have Checking accounts and Credit Unions have Savings Accounts. B) Banks are for profit. Credit Unions are Non-profit. C) Banks can give loans and Credit Unions cannot. D) Credit Unions allow everyone to join and Banks are selective. Show Answer Correct Answer: B) Banks are for profit. Credit Unions are Non-profit. 14. Canada currently uses the gold standard A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 15. Define Store of value A) Value of money remains constant. B) Eliminates function of double coincidence of wants. C) Money is divisible. D) None of the above. Show Answer Correct Answer: A) Value of money remains constant. 16. Which of these is a primary function of commercial banks? A) Controlling the nation's money supply. B) Setting interest rates for the economy. C) Accepting deposits and making loans. D) Issuing government bonds. Show Answer Correct Answer: C) Accepting deposits and making loans. 17. Anything that's used to determine value during the exchange of goods and services A) Medium of Exchange. B) Barter. C) Money. D) Store of Value. Show Answer Correct Answer: A) Medium of Exchange. 18. Money that has value because the government has ordered that it is an acceptable means to pay debts A) Currency. B) Representative Money. C) Fiat Money. D) Commodity Money. Show Answer Correct Answer: C) Fiat Money. 19. What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A) To make sure that the government has enough gold to cover its expenses. B) To make sure that banks do not fail. C) To make sure that banks charge a fair amount for interest on loans. D) To make sure that customers do not lose money if a bank fails. Show Answer Correct Answer: D) To make sure that customers do not lose money if a bank fails. 20. Which agency regulates the money supply in India? A) The Government of India. B) Commercial banks. C) Reserve Bank of India. D) None of the above. Show Answer Correct Answer: C) Reserve Bank of India. 21. Which of the following characteristic ensures that our money maintains its value over time? A) Scarcity. B) Uniformity. C) Divisibility. D) Durability. Show Answer Correct Answer: A) Scarcity. 22. Describe the impact of inflation on the value of money. A) Inflation stabilizes the value of money. B) Inflation reduces the value of money by decreasing its purchasing power. C) Inflation increases the value of money by boosting its purchasing power. D) Inflation has no impact on the value of money. Show Answer Correct Answer: B) Inflation reduces the value of money by decreasing its purchasing power. 23. Repo Rate relates to ..... A) Short-term borrowing by commercial banks. B) Long-term borrowing by commercial banks. C) Disinvestments. D) Dissaving. Show Answer Correct Answer: A) Short-term borrowing by commercial banks. 24. Food, water, clothing, shelter are examples of A) Needs. B) Wants. C) Opportunity costs. D) Values. Show Answer Correct Answer: A) Needs. 25. Buying and selling of government securities by the central bank from/to banks is called? A) Open market operations. B) Margin. C) Banking. D) None of the above. Show Answer Correct Answer: A) Open market operations. ← 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 9Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 10Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books