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

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

2 / 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.

3 / 15

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

4 / 15

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

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

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

7 / 15

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

8 / 15

Which of the following formulae is INCORRECT?

9 / 15

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

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

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

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

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.

14 / 15

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

15 / 15

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

Your score is

The average score is 68%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.NameScoreDurationPoints
1Akshath100 %2 minutes 21 seconds15
2Preet100 %2 minutes 24 seconds15
3MEGHNA100 %7 minutes 54 seconds15
4..b93 %2 minutes 20 seconds14
5Akash93 %31 minutes 22 seconds14
6aha87 %2 minutes 57 seconds13
7Harshit pandey87 %3 minutes 34 seconds13
8harshit pandey87 %4 minutes 35 seconds13
9Devashree87 %4 minutes 42 seconds13
10Rahu87 %7 minutes 35 seconds13
11parnit87 %13 minutes 25 seconds13
12R80 %3 minutes 31 seconds12
13hemi80 %4 minutes 22 seconds12
14Ananyah80 %4 minutes 43 seconds12
15Aakriti80 %5 minutes 2 seconds12
16harshit pandey80 %5 minutes 43 seconds12
17sahil80 %5 minutes 59 seconds12
18Ak80 %6 minutes 35 seconds12
19yash80 %7 minutes 9 seconds12
20mj80 %10 minutes 10 seconds12
21Maggi73 %3 minutes 47 seconds11
22jnv jammu 273 %4 minutes 24 seconds11
23Akshath73 %7 minutes 16 seconds11
24Atul73 %7 minutes 17 seconds11
25Anju73 %9 minutes 38 seconds11
26Aparna67 %7 minutes 15 seconds10
27Amrin shaji60 %4 minutes 59 seconds9
28mani sir60 %6 minutes 43 seconds9
29Shreya60 %6 minutes 51 seconds9
30BOY MYSTERIOUS60 %8 minutes 25 seconds9
31aakash60 %8 minutes 28 seconds9
32Sharfraz khan60 %3 hours 10 minutes 42 seconds9
33raja53 %3 minutes 13 seconds8
34Dhruv (eco topper anta)53 %3 minutes 40 seconds8
35Zzz53 %4 minutes 17 seconds8
36Anika53 %25 minutes 58 seconds8
37Jayashree47 %2 minutes 57 seconds7
38Prisha47 %6 minutes 57 seconds7
39Arshnoor40 %1 minutes 36 seconds6
40Gargi40 %3 minutes 3 seconds6
41Priyanka40 %5 minutes 54 seconds6
42Saumyasingh40 %8 minutes 2 seconds6
43shiva40 %8 minutes 31 seconds6
44Rahul20 %3 minutes 46 seconds3
45er0 %1 minutes 52 seconds0

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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