Money and Banking Class 12 MCQ Quiz – Test Your Understanding!

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Are you ready to test your knowledge of Money and Banking from the Class 12 Economics syllabus? This chapter explains the functions of money, the role of the central bank, and the credit creation process in an economy. Understanding these concepts is crucial for CBSE board exams and competitive exams.

About the Quiz

  • Chapter Name: Money and Banking
  • Subject: Economics
  • Book: NCERT Class 12 Economics
  • Question Type: Multiple Choice Questions (MCQs)
  • Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of monetary policy and banking system
✔ Enhances knowledge of RBI’s role in regulating money supply
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 2 Money and Banking

1 / 15

Supply of money refers to the quantity of money

2 / 15

Which of these do not fall under the purview of the Central Bank?

  1. controlling money supply

  2. providing loans to citizens

  3. issuing currency

  4. holding foreign exchange reserves

3 / 15

Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crores.

Under the given situation the value of reserve requirements would be________ (Fill up the blank with the correct alternative)

4 / 15

Which of the following formulae is INCORRECT?

5 / 15

_________ is an institution that accepts deposits for lending purposes. (Fill up the blank with the correct alternative)

6 / 15

Identify which of the following is not a function of the Reserve Bank of India? (Choose the correct alternative)

7 / 15

Ms. Sakshi, an economics teacher, was explaining the concept of a ‘minimum percentage of the total deposits to be kept by any commercial bank with the Central Bank of the country, as per norms and statute prevailing in the country’. From the following, choose the correct alternative which specifies the concept explained by her.

8 / 15

How does a cut in the Repo rate by RBI affect the demand for goods and services?

9 / 15

If the legal reserve requirement (LRR) is 20%, what is the value of the money multiplier?

10 / 15

A bank ‘run’ occurs when a large number of customers of a bank withdraw their deposits simultaneously. This can cause a bank to become insolvent if it cannot pay back all the depositors. Which of the following facts about a bank make a bank run possible?

11 / 15

Money can be used to transfer purchasing power from the present to the future. Which specific function of money is this called?

12 / 15

Supply of money refers to……................. (Choose the correct alternative)

13 / 15

Which of the following is not a Quantitative Method of credit control?

14 / 15

What happens to the money multiplier when the Cash Reserve Ratio (CRR) increases?

15 / 15

Which of the following statements about the money supply is correct?

Your score is

The average score is 78%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.NameScoreDurationPoints
1vj93 %4 minutes 3 seconds14
2Bhawna93 %7 minutes 43 seconds14
3yup87 %2 minutes 28 seconds13
4sneha87 %3 minutes 13 seconds13
5Roni87 %4 minutes 53 seconds13
6Suraj87 %5 minutes 34 seconds13
7Tushar kumar80 %3 minutes 41 seconds12
8AP80 %4 minutes 48 seconds12
9raj80 %8 minutes 31 seconds12
10abs60 %7 minutes 31 seconds9
11Tushar kumar53 %18 minutes 11 seconds8
12ss47 %9 minutes 44 seconds7

Key Topics Covered in the Quiz

✔ Functions of Money – Medium of exchange, Store of value, Unit of account
✔ Money Supply & Its Measures (M1, M2, M3, M4)
✔ Functions of Commercial Banks – Credit creation process
✔ Role of the Reserve Bank of India (RBI) – Monetary policy tools (CRR, SLR, Repo Rate, Reverse Repo Rate)
✔ Instruments of Credit Control – Quantitative & Qualitative methods

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