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
Central Bank is a
  • A
    Rural bank
  • B
    Commercial bank
  • C
    Apex bank
    Correct
  • D
    Regional bank
2
Money is a medium of
  • A
    Exchange
    Correct
  • B
    Communication
  • C
    Barter
  • D
    Speculation
3
The functions of money is that it is a
  • A
    Store of value
    Correct
  • B
    Store of currency
  • C
    None of the above
  • D
    Store of stocks
4
Money over comes the problems of barter system. It is
  • A
    0
  • B
    Can’t say
  • C
    Seldom
  • D
    1
    Correct
5
One of the measures of money supply is
  • A
    N1
  • B
    P1
  • C
    M1
    Correct
  • D
    O1
6
The process of money creation or credit creation IS done by
  • A
    Rural bank
  • B
    World bank
  • C
    commercial banks
    Correct
  • D
    Central bank
7
Money is anything that is
  • A
    Regionally accepted
  • B
    Accepted by banks
  • C
    Universally accepted
    Correct
  • D
    Locally accepted
8
Barter system is
  • A
    Exchange of foreign exchange
  • B
    Exchange of money
  • C
    Exchange of goods
    Correct
  • D
    Exchange of trade
9
One drawback of barter exchange is
  • A
    Lack of double coincidence of wants
    Correct
  • B
    Lack of coincidence of wants
  • C
    Lack of goods
  • D
    Lack of trust
10
What do you mean by credit creation by commercial banks?
  • A
    It is the process of total withdrawal creation
  • B
    It is the process of creation of foreign exchange
  • C
    It is the process of loan creation
  • D
    It is the process of total deposit creation
    Correct
11
Bank rate is for
  • A
    Central banks by the central bank
  • B
    Commercial banks by the government
  • C
    Commercial banks by the central bank
    Correct
  • D
    Central bank by the commercial banks
12
Lending rate is for
  • A
    Public by the commercial banks
    Correct
  • B
    Central banks by the central bank
  • C
    Commercial banks by the government
  • D
    Central bank by the commercial banks
13
Open market operations is
  • A
    Buying and selling of securities by the central bank
    Correct
  • 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 securities by the commercial banks
14
Open market operations is done by
  • A
    World bank
  • B
    Central bank
    Correct
  • C
    Commercial banks
  • D
    Rural bank
15
Money supply is the total stock of currency and coins held by the government
  • A
    Sometimes
  • B
    0
    Correct
  • C
    Can’t say
  • D
    1