CBSE Class 12 Economics Money and Banking Quiz 1

Quiz Guides

Quiz Guides

CBSE

CBSE › Class 12 › Economics › Money and Banking

1/10

0:00

1. What is the defect of the barter system?

A Lack of double coincidence of wants B Difficulty in the measurement of value C Difficulty in store of value D All of these

2. Which of the following is the credit money?

A Cheque and draft B Promissory note C Exchange note D All of these

3. Which among the following is the near money?

A Bonds B Insurance policy C Securities D All of these

4. Which of the following is the feature of money?

A General acceptability B Homogeneous unit C Liquid asset D All of these

5. In order to encourage investment in the economy, the Central Bank may ________

A Reduce Cash Reserve Ratio B Increase Cash Reserve Ratio C Sell Government securities in the open market D Increase Bank Rate

6. Institution that accepts deposits for lending purpose is known as __________

A Commercial Bank B Central Bank C Government D Public

7. Which of the following is the function of a commercial bank?

A Accepting deposits B Credit creation C Agency function D All of these

8. The central bank can increase the availability of credit by:

A Rasing repo rate B Raising reverse repo rate C Buying government securities D Selling government securities

9. Giving permission to withdraw money by an amount more than deposited to is known as _________

A Advance B Overdraft C Loan D None of these

10. What are the alternative measures of money supply in India?

A M1 B M2 C M3 and M4 D All of these

Practice more on Money and Banking

Quiz 1 Quiz 2 Quiz 3 Quiz 4 Quiz 5 Quiz 6 Quiz 7 Quiz 8

Free chapter-wise MCQ practice with instant answers and explanations for CBSE classes 6–12 — plus timed mock tests. Learn smarter, score higher.