Money And Banking CBSE Questions & Answers

Money And Banking

This is Economics Class 12 Money and Banking CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
One of the functions of Central Bank among the following is
  • A
    Bank of issue
    Correct
  • B
    Bank of foreign exchange
  • C
    Bank of delivery
  • D
    Bank of securities
2
One of the functions of commercial l banks among the following is
  • A
    Accepting deposits
    Correct
  • B
    Accepting paper
  • C
    Accepting securities
  • D
    Accepting coins
3
An economy based on barter system is also called as
  • A
    D-D economy
  • B
    M-M economy
  • C
    C-C economy
    Correct
  • D
    B-B economy
4
One of the primary functions of money is
  • A
    Standard of deferred payments
  • B
    Store of value
  • C
    Measure of value
    Correct
  • D
    Store of wealth
5
One of the secondary functions of money is
  • A
    Store of wealth
  • B
    Standard of deferred payments
    Correct
  • C
    Medium of exchange
  • D
    Measure of value
6
Which one of the following is not a secondary function of money
  • A
    Cant’ say
  • B
    Measure of value
    Correct
  • C
    Standard of deferred payments
  • D
    Store of value
7
Which one of the following is not a secondary functions of money
  • A
    Standard of deferred payments
  • B
    Cant’ say
  • C
    Medium of exchange
    Correct
  • D
    Store of value
8
Which one of the following is not a primary functions of money
  • A
    Cant’ say
  • B
    Store of value
    Correct
  • C
    Measure of value
  • D
    Medium of exchange
9
The narrow definition of money is based on
  • A
    Medium of payment function
    Correct
  • B
    Transferability of money
  • C
    Store of value function
  • D
    Cant’ say
10
The broad definition of money is based on
  • A
    Medium of payment function
  • B
    Transferability of money
  • C
    Cant’ say
  • D
    Store of value function
    Correct
11
The narrow definition of money is not based on
  • A
    Both A & B
  • B
    Store of value function
    Correct
  • C
    Medium of payment function
  • D
    Cant’ say
12
The broad definition of money is not based on
  • A
    Medium of payment function
  • B
    Store of value function
    Correct
  • C
    Both A & B
  • D
    Cant’ say
13
Which role of Central Bank makes it as the controller of money supply or credit
  • A
    Issuing only Rs.100 denomination notes
  • B
    Issuing only Rs.1000 denomination notes
  • C
    Issuing currency
    Correct
  • D
    Issuing coins
14
One of the various qualitative instruments used by the central bank in during inflation is
  • A
    Raise margin requirements
    Correct
  • B
    Remove margin requirements
  • C
    Reduce margin requirements
  • D
    Fix margin requirements
15
One of the various qualitative instruments used by the central bank in during deflation is
  • A
    Raise margin requirements
  • B
    Reduce margin requirements
    Correct
  • C
    Remove margin requirements
  • D
    Fix margin requirements