This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a problem of bartering as a medium of exchange? A) The need for a double coincidence of wants. B) The need for divisibility. C) The need for portability. D) The need for trade and exchange. Show Answer Correct Answer: D) The need for trade and exchange. 2. What is the function of money as a unit of account? A) To facilitate barter exchanges. B) To measure the value of goods and services. C) To store wealth. D) To act as a medium of exchange. Show Answer Correct Answer: B) To measure the value of goods and services. 3. Reverse Repo Rate is the rate at which Central Bank: A) Lends money to commercial Banks for short-term. B) Lends money to Commercial Banks for long term. C) Accepts deposits from the Commercial Banks. D) None of these. Show Answer Correct Answer: C) Accepts deposits from the Commercial Banks. 4. What does interest rate mean? A) Interest rate is the total amount of money you have in your bank account. B) Interest rate is a fixed fee charged for using a credit card. C) Interest rate is the cost of borrowing money or the return on savings, expressed as a percentage. D) Interest rate is the amount of money you earn from investments. Show Answer Correct Answer: C) Interest rate is the cost of borrowing money or the return on savings, expressed as a percentage. 5. Open market is A) Buying and selling of securities by the central bank. B) Buying and selling of foreign exchange by the central bank. C) Buying and selling of currency by the central bank. D) Buying and selling of security by the commercial bank. Show Answer Correct Answer: A) Buying and selling of securities by the central bank. 6. You may want to ..... a loan as quickly as possible to save on interest. A) Charge. B) Pay off. C) Get into. D) None of the above. Show Answer Correct Answer: B) Pay off. 7. The money that you receive for mowing the lawn, babysitting or making good grades is called ..... A) Income. B) Credit. C) Debt. D) Interest. Show Answer Correct Answer: A) Income. 8. What would make an item unsuitable to act as money? A) It is easy to carry. B) It is recognizable. C) It is generally acceptable. D) It is perishable. Show Answer Correct Answer: D) It is perishable. 9. ..... are called legal tenders A) Demand deposit. B) Time deposits. C) Inter-bank deposit. D) Currency notes and coins. Show Answer Correct Answer: D) Currency notes and coins. 10. The amount of interest paid is based on an ..... A) Annuity. B) Unit of account. C) Interest rate. D) None of the above. Show Answer Correct Answer: C) Interest rate. 11. What is the other name of money multiplier A) Deposit multiplier. B) Credit multiplier. C) Cash reserve ratio. D) None of these. Show Answer Correct Answer: A) Deposit multiplier. 12. Income tax increases personal income A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. The central bank of the United States is the: A) Federal Reserve Banking System. B) Comptroller's Bank. C) United States National Bank. D) U.S. Treasury Bank. Show Answer Correct Answer: A) Federal Reserve Banking System. 14. The problem of adverse selection can be corrected with A) Private production and sale of information. B) Government regulation to increase the information. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 15. Progressive taxes A) Are higher the more you make. B) Are lower the more you make. C) Are the same for everyone. D) None of the above. Show Answer Correct Answer: A) Are higher the more you make. 16. Why do banks charge fees for their services? A) To cover the cost of providing services. B) To discourage customers from using their services. C) To increase the value of their stocks. D) To decrease the amount of money in circulation. Show Answer Correct Answer: A) To cover the cost of providing services. 17. Credit cards are:i. a generally accepted form of payment and therefore part of M1.ii. are included in M1 because you write a check to pay your monthly bill.iii. a means of borrowing money. A) I only. B) I and iii. C) Ii only. D) I and ii. E) Iii only. Show Answer Correct Answer: E) Iii only. 18. Investment bank A) Financial institution that is involved in trading securities in financial markets. B) Financial institution that provides services for businesses. C) Financial institution that makes money by issuing loans. D) Bank account that allows the account owner to make deposits, write checks, and withdraw money. Show Answer Correct Answer: B) Financial institution that provides services for businesses. 19. La cuenta de ahorros A) To save. B) Savings account. C) To pay in cash. D) Checking account. Show Answer Correct Answer: B) Savings account. 20. How does inflation impact the money in your savings account? A) It increases the value of your money. B) It decreases the value of your money. C) It has no impact on the value of your money. D) It depends on the interest rate. Show Answer Correct Answer: B) It decreases the value of your money. 21. Bank Negara Malaysia is frequently considered as banker to the banks because it ..... A) Accepts deposits from the public. B) Lowers the discount rate in order to restrict the money supply. C) Holds bankers' reserves, provides banks with currency and loans, and clears their checks. D) Has no monopoly power in printing paper currency. Show Answer Correct Answer: C) Holds bankers' reserves, provides banks with currency and loans, and clears their checks. 22. Mark Zuckenberg ..... a lot of money from Facebook. A) Makes. B) Does. C) Checks. D) Passes. Show Answer Correct Answer: A) Makes. 23. Money helps us count prices like 5 rupees, 10 rupees. What function is this? A) Unit of Account. B) Store of Toys. C) Grow of Plants. D) None of the above. Show Answer Correct Answer: A) Unit of Account. 24. ..... is the privately owned, publicly controlled central bank of the U.S. A) J.P. Morgan Chase. B) Bank of America. C) The Federal Reserve System (FED). D) Wells Fargo. Show Answer Correct Answer: C) The Federal Reserve System (FED). 25. Which function of money refers to its use to measure the value of goods and services? A) Medium of exchange. B) Store of value. C) Unit of account. D) Standard of deferred payment. Show Answer Correct Answer: C) Unit of account. ← 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 10Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books