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
Calculate money multiplier, if initial deposit of Rs. 200 cores lead to creation of total deposits of Rs. 1600 cores.
  • A
    8.0
    Correct
  • B
    6.0
  • C
    3.0
  • D
    4.0
2
Which of the following is a commercial bank
  • A
    SBI
    Correct
  • B
    RBI
  • C
    LIC
  • D
    Reliance
3
Which of the following is the central bank
  • A
    RBI
    Correct
  • B
    LIC
  • C
    Reliance
  • D
    SBI
4
One of the functions of Central Bank among the following is
  • A
    Bank of delivery
  • B
    Bank of securities
  • C
    Bank of banks
    Correct
  • D
    Bank of foreign exchange
5
One of the functions of Central Bank among the following is
  • A
    Bank of securities
  • B
    Bank of foreign exchange
  • C
    Bank of the government
    Correct
  • D
    Bank of delivery
6
One of the functions of Central Bank among the following is
  • A
    Custodian of deliveries
  • B
    Custodian of securities
  • C
    Custodian of foreign exchange
    Correct
  • D
    Custodian of banks
7
One of the functions of commercial l banks among the following is
  • A
    Advancing securities
  • B
    Advancing issues
  • C
    Advancing Loans
    Correct
  • D
    Advancing foreign exchange
8
M1 includes
  • A
    Currency and coins
    Correct
  • B
    Term deposits
  • C
    Post Office savings deposits
  • D
    Term deposits in RBI
9
One of the primary functions of money is
  • A
    Medium of exchange
    Correct
  • B
    Store of wealth
  • C
    Standard of deferred payments
  • D
    Store of value
10
One of the secondary functions of money is
  • A
    Measure of value
  • B
    Standard of deferred payments
    Correct
  • C
    Store of wealth
  • D
    Medium of exchange
11
Which one of the following is not a primary functions of money
  • A
    Measure of value
  • B
    Medium of exchange
  • C
    None of these
  • D
    Standard of deferred payments
    Correct
12
One of the various quantitative instruments used by the central bank in during inflation is
  • A
    Introduce bank rate
  • B
    Fix bank rate
  • C
    Reduce bank rate
  • D
    Raise Bank rate
    Correct
13
One of the various quantitative instruments used by the central bank in during inflation is
  • A
    Sell government securities
    Correct
  • B
    Export government securities
  • C
    Block government securities
  • D
    Buy government securities
14
One of the various quantitative instruments used by the central bank in during deflation is
  • A
    Fix bank rate
  • B
    Introduce bank rate
  • C
    Reduce bank rate
    Correct
  • D
    Raise Bank rate
15
One of the various quantitative instruments used by the central bank in during deflation is
  • A
    Block government securities
  • B
    Export government securities
  • C
    Sell government securities
  • D
    Buy government securities
    Correct