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 various quantitative instruments used by the central bank in during inflation is
  • A
    Remove CRR
  • B
    Fix CRR
  • C
    Reduce CRR
  • D
    Raise CRR
    Correct
2
One of the various quantitative instruments used by the central bank in during deflation is
  • A
    Remove CRR
  • B
    Raise CRR
  • C
    Fix CRR
  • D
    Reduce CRR
    Correct
3
Selling government securities by the central bank in India during excess demand will be
  • A
    Destabilisation
  • B
    Deflationary
  • C
    Stabilisation
  • D
    Inflationary
    Correct
4
Raising bank rate by the central bank in India during excess demand is
  • A
    Destabilisation
  • B
    Inflationary
  • C
    Deflationary
    Correct
  • D
    Stabilisation
5
Raising CRR by the central bank in India during excess demand will be
  • A
    Stabilisation
  • B
    Inflationary
  • C
    Deflationary
    Correct
  • D
    Destabilisation
6
Raising SLR by the central bank in India during excess demand will be
  • A
    Deflationary
    Correct
  • B
    Inflationary
  • C
    Stabilisation
  • D
    Destabilisation
7
Raising margin requirements by the central bank in India during excess demand will be
  • A
    Inflationary
  • B
    Destabilisation
  • C
    Deflationary
    Correct
  • D
    Stabilisation
8
Raising margin requirements by the central bank in India during deficient demand is
  • A
    Destabilisation
  • B
    Stabilisation
  • C
    Inflationary
  • D
    Deflationary
    Correct
9
Reducing margin requirements by the central bank in India during excess demand will be
  • A
    Destabilisation
  • B
    Inflationary
    Correct
  • C
    Stabilisation
  • D
    Inflationary
10
Reducing margin requirements by the central bank in India during deficient demand will be
  • A
    Inflationary
    Correct
  • B
    Inflationary
  • C
    Stabilisation
  • D
    Destabilisation
11
Calculate the money multiplier if LRR is 10\(\% \).
  • A
    30.0
  • B
    40.0
  • C
    20.0
  • D
    10.0
    Correct
12
Calculate the money multiplier if LRR is 5\(\% \).
  • A
    1.0
  • B
    10.0
  • C
    20.0
    Correct
  • D
    5.0
13
Calculate the total deposit creation if initial deposit is of Rs. 500 crores and LRR is 10\(\% \).
  • A
    Rs. 5000
    Correct
  • B
    Rs. 50000
  • C
    Rs. 500
  • D
    Rs. 50
14
If total deposits created by commercial banks are Rs.12000, LRR is 25\(\% \) calculate initial deposit.
  • A
    Rs. 84000
  • B
    Rs. 40000
  • C
    Rs. 48000
    Correct
  • D
    Rs. 50000
15
Calculate LRR, if initial deposit of Rs. 200 cores lead to creation of total deposits of Rs. 1600 cores.
  • A
    0.215
  • B
    0.512
  • C
    0.2
  • D
    0.125
    Correct