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

Find the missing figures and choose the correct alternative:

“The value of all goods and services can be expressed in monetary units.” On the basis of the given statement, identify the function performed by money:

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

Demand Deposits include______ and _________. (Fill up the blank with the correct alternative)

1. Saving account deposits
2. Fixed deposits
3. Current Account Deposits
4. Post Office Savings

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

Identify which of the following bank does not interact directly with the general public? (Choose the correct alternative)v

Read the following statements carefully and choose the correct alternative from the following:

• Statement 1 – Demonetization was the step taken by the Government of India in order to tackle the problems of corruption, black money, terrorism, and circulation of fake currency in the Indian Economy.
• Statement 2 – Demonetization has ensured improved tax compliance in India over the period of time.

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

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

The Reserve Bank of India can increase the money supply in the economy by ____________. (Choose the correct alternative)

Credit cards are excluded from all measures of the quantity of money because they are not really a method of payment, but a method of deferring payment. When you buy a meal with a credit card, the bank that issued the card pays the restaurant the amount that is due. At a later date, you will have to repay the bank, perhaps with interest. For this, you might use the money in your demand deposits, and that money is included in the economy's stock of money.

Which of the following can happen with an increased use of credit cards in an economy?

Which of the following formulae is INCORRECT?

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?

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

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