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

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

2 / 15

Supply of money refers to the quantity of money

3 / 15

Read the following statements -Assertion (A) and Reason(R). Choose one of the correct alternatives given below:

  • Assertion (A): Demand Deposits are considered a convenient mode of payment for the execution of even high-value transactions.

  • Reason(R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn against the issue of cheques and other similar instruments of payment.

4 / 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.

5 / 15

“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:

6 / 15

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

7 / 15

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

8 / 15

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

9 / 15

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

10 / 15

Which of the following formulae is INCORRECT?

11 / 15

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

12 / 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

13 / 15

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

14 / 15

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

15 / 15

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

Your score is

The average score is 69%

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
4Deepak93 %5 minutes 33 seconds14
5Bhawna93 %7 minutes 43 seconds14
6yup87 %2 minutes 28 seconds13
7sneha87 %3 minutes 13 seconds13
8Roni87 %4 minutes 53 seconds13
9Suraj87 %5 minutes 34 seconds13
10Tushar kumar80 %3 minutes 41 seconds12
11AP80 %4 minutes 48 seconds12
12raj80 %8 minutes 31 seconds12
13jsks73 %5 minutes 43 seconds11
14anshika73 %8 minutes 42 seconds11
15cookie67 %12 minutes 37 seconds10
16Akku60 %5 minutes 10 seconds9
17abs60 %7 minutes 31 seconds9
18Mohit53 %4 minutes 21 seconds8
19preethi53 %8 minutes 46 seconds8
20Tushar kumar53 %18 minutes 11 seconds8
21pakhi47 %3 minutes 2 seconds7
22Xyz47 %4 minutes 35 seconds7
23ss47 %9 minutes 44 seconds7
24sarah47 %10 minutes 5 seconds7
25pakhi27 %2 minutes 53 seconds4
26Elsa20 %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

More Class 12 Economics MCQ Quizzes

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