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
The lender of last resort is a function of
  • A
    Commercial bank
  • B
    Post office
  • C
    Rural bank
  • D
    Central bank.
    Correct
2
The lender of last resort is not a function of
  • A
    Post office
  • B
    Commercial bank
    Correct
  • C
    Central bank.
  • D
    Rural bank
3
Cash reserve ratio is a percentage of total deposits which the central bank keeps with the commercial banks by law.
  • A
    Can’t say
  • B
    1
  • C
    0
    Correct
  • D
    Sometimes
4
Cash reserve ratio is a percentage of total deposits which the commercial bank keeps with the central bank by law.
  • A
    Sometimes
  • B
    Can’t say
  • C
    0
  • D
    1
    Correct
5
Statutory Liquidity ratio is a percentage of total deposits which the central bank keeps with the commercial banks by law.
  • A
    Sometimes
  • B
    Can’t say
  • C
    0
    Correct
  • D
    1
6
Statutory Liquidity ratio is a percentage of total deposits which the commercial bank keeps with the central bank by law.
  • A
    Can’t say
  • B
    Sometimes
  • C
    0
  • D
    1
    Correct
7
M1 includes
  • A
    Post Office savings deposits
  • B
    Currency with public
    Correct
  • C
    Term deposits in RBI
  • D
    Term deposits
8
M2 includes M1 and
  • A
    Term deposits in RBI
  • B
    Post Office savings deposits
    Correct
  • C
    Term deposits
  • D
    Currency and coins
9
One of the type of deposit accounts with the commercial banks is
  • A
    Share holding
  • B
    Savings account
    Correct
  • C
    Gold
  • D
    Mutual fund
10
Barter system is now replaced by
  • A
    Monetary system
    Correct
  • B
    Financial system
  • C
    Banking system
  • D
    International trade
11
The fraction of deposits is kept as Cash Reserves by the commercial banks with the
  • A
    Central bank
    Correct
  • B
    Rural bank
  • C
    World bank
  • D
    Commercial banks
12
The fraction of deposits kept as Cash Reserves by the commercial banks is called
  • A
    CRR
    Correct
  • B
    PLR
  • C
    LLR
  • D
    SLR
13
The fraction of deposits kept as Cash Reserves by the commercial banks with themselves is called
  • A
    LLR
  • B
    CRR
  • C
    SLR
    Correct
  • D
    RR
14
The fraction of deposits kept as Cash Reserves by the commercial banks is a
  • A
    Economic requirement
  • B
    Social requirement
  • C
    Legal requirement
    Correct
  • D
    Political requirement
15
The fraction of deposits kept as Cash Reserves by the commercial banks are also called as
  • A
    CRR
  • B
    PLR
  • C
    LRR
    Correct
  • D
    SLR