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

by
WhatsApp Group Join Now
Telegram Group Join Now

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

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.

2 / 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:

3 / 15

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

4 / 15

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

5 / 15

Also See:  My Mother at Sixty-Six Class 12: Important Questions and Answers

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

6 / 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

7 / 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)

8 / 15

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

9 / 15

Supply of money refers to the quantity of money

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

Find the missing figures and choose the correct alternative:

RoundDepositsLoans (80%)Reserve Ratio (20%)
I1,000800200
II800...(i)...160
Total...(ii)......(iii)......(iv)...

12 / 15

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

13 / 15

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

14 / 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.

15 / 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

Your score is

The average score is 77%

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
6Tushar kumar80 %3 minutes 41 seconds12
7AP80 %4 minutes 48 seconds12
8raj80 %8 minutes 31 seconds12
9abs60 %7 minutes 31 seconds9
10Tushar kumar53 %18 minutes 11 seconds8
11ss47 %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

More Class 12 Economics MCQ Quizzes

Take the quiz now and strengthen your exam preparation!

WhatsApp Group Join Now
Telegram Group Join Now
Share this Article

Related posts:

Default ThumbnailNational Income and Related Aggregates Class 12 Notes: A Comprehensive Guide Default ThumbnailIndian Economy 1950-1990: Class 12 Important Questions and Answers for Board Exams Default ThumbnailMoney and Banking Class 12: Must-Know Questions and Answers Default ThumbnailImportant Questions and Answers on Liberalization, Privatization, and Globalization for Class 12 Economics Board Exams Default ThumbnailClass 12 Notes: Determination of Income and Employment Simplified Default ThumbnailSimplified Rural Development Notes for Class 12 Students Default ThumbnailEmployment: Growth, Informalization, and Other Issues Class 12 MCQ Quiz – Test Your Understanding! Default ThumbnailDetermination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!

Leave a Comment