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

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

2 / 15

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

3 / 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

4 / 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:

5 / 15

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

6 / 15

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

7 / 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.

8 / 15

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

9 / 15

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

10 / 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.

11 / 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)

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

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

14 / 15

Find the missing figures and choose the correct alternative:

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

15 / 15

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

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The average score is 71%

Leaderboard – Top Scorers

Check the top scorers here!

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

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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