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Class 12 Economics
Money And Banking
Quiz 1
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What is the defect of the barter system?
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Lack of double coincidence of wants
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Difficulty in the measurement of value
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Difficulty in store of value
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All of these
Explanation
All of these
Which of the following is the credit money?
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Cheque and draft
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Promissory note
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Exchange note
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All of these
Explanation
All of these
Which among the following is the near money?
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Bonds
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Insurance policy
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Securities
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All of these
Explanation
All of these
Which of the following is the feature of money?
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General acceptability
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Homogeneous unit
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Liquid asset
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All of these
Explanation
All of these
In order to encourage investment in the economy, the Central Bank may ________
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Reduce Cash Reserve Ratio
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Increase Cash Reserve Ratio
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Sell Government securities in the open market
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Increase Bank Rate
Explanation
Reduce Cash Reserve Ratio
Institution that accepts deposits for lending purpose is known as __________
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Commercial Bank
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Central Bank
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Government
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Public
Explanation
Commercial Bank
Which of the following is the function of a commercial bank?
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Accepting deposits
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Credit creation
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Agency function
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All of these
Explanation
All of these
The central bank can increase the availability of credit by:
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Rasing repo rate
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Raising reverse repo rate
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Buying government securities
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Selling government securities
Explanation
Selling government securities
Giving permission to withdraw money by an amount more than deposited to is known as _________
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Advance
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Overdraft
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Loan
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None of these
Explanation
Overdraft
What are the alternative measures of money supply in India?
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M1
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M2
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M3 and M4
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All of these
Explanation
All of these
Who circulates all mint and one rupee not in India?
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Ministry of Finance
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RBI
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Ministry of External Affairs
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State Government
Explanation
Ministry of Finance
Which of the following is the function of a Central bank?
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Issue of notes
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Banker to the Government and Banks
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Supply and control of money
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All of these
Explanation
All of these
The ratio of total deposits that a commercial bank has to keep with RBI is called:
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Statutory liquidity ratio
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Deposit ratio
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Cash reserve ratio
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Legal reserve ratio
Explanation
Cash reserve ratio
Demand deposits include
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Saving account deposits and fixed deposits
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Saving account deposits and current account deposits
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Current account deposits and fixed deposits
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All type of deposits
Explanation
Saving account deposits and current account deposits
What are the necessary conditions of the Barter System?
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Limited Needs
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Limited Exchange Area
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Economically Backward Society
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All the above
Explanation
All the above
What are the advantages of the Barter System?
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Simple System
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More Mutual Co-operation
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No Economic Disparities
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All the above
Explanation
All the above
Which one is the difficulty of the Barter System?
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Lack of Double Coincidence
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Difficulty of Division of the Goods
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Lack of General Acceptable Measure of Value
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All the above
Explanation
All the above
Which is the correct order of money evolution?
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Commodity Money, Paper Money, Metal Money
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Commodity Money, Metal Money, Paper Money, Credit Money
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Credit Money, Metal Money, Paper Money
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None of the above
Explanation
Commodity Money, Metal Money, Paper Money, Credit Money
“Money is what money does.” Who said it?
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Hartley Withers
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Hawtrey
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Thomas
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Keynes
Explanation
Hartley Withers
Which one is included in the primary function of money?
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Medium of Exchange
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Measure of Value
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Both (a) and (b)
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Store of Value
Explanation
Both (a) and (b)
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