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

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

2 / 15

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

3 / 15

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

4 / 15

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

5 / 15

Money supply in India may increase if, ________________(Choose the correct alternative)

  1. Reserve Bank of India(RBI) injects more money into circulation

  2. Commercial banks expand their credit operation

  3. Tax rates are reduced by the Central Government

  4. Reserve Bank of India increases the Bank Rate

6 / 15

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.

7 / 15

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

8 / 15

Read the following statements carefully and choose the correct alternatives given below:

  • Statement 1 – The value of the money multiplier is determined by the reserve ratio prevailing in the monetary system.

  • Statement 2 – The process of credit creation directly relates to the value of the reserve ratio.

9 / 15

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

10 / 15

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

11 / 15

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

12 / 15

In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ________________. (Fill up the blank with the correct alternative)

13 / 15

Which of the following formulae is INCORRECT?

14 / 15

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

15 / 15

Which of the following agency is responsible for issuing ₹ 1 currency notes in India?

Your score is

The average score is 68%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.NameScoreDurationPoints
1rimon100 %1 minutes 14 seconds15
2sarah100 %1 minutes 52 seconds15
3vj93 %4 minutes 3 seconds14
4Bhawna93 %7 minutes 43 seconds14
5yup87 %2 minutes 28 seconds13
6sneha87 %3 minutes 13 seconds13
7Roni87 %4 minutes 53 seconds13
8Suraj87 %5 minutes 34 seconds13
9Tushar kumar80 %3 minutes 41 seconds12
10AP80 %4 minutes 48 seconds12
11raj80 %8 minutes 31 seconds12
12jsks73 %5 minutes 43 seconds11
13anshika73 %8 minutes 42 seconds11
14cookie67 %12 minutes 37 seconds10
15Akku60 %5 minutes 10 seconds9
16abs60 %7 minutes 31 seconds9
17Mohit53 %4 minutes 21 seconds8
18preethi53 %8 minutes 46 seconds8
19Tushar kumar53 %18 minutes 11 seconds8
20pakhi47 %3 minutes 2 seconds7
21Xyz47 %4 minutes 35 seconds7
22ss47 %9 minutes 44 seconds7
23sarah47 %10 minutes 5 seconds7
24pakhi27 %2 minutes 53 seconds4
25Elsa20 %1 minutes 47 seconds3

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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