12th Class Economics Money And Banking Question Bank

done Assertion-Reason - Money Total Questions - 12

• question_answer1)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): There are two components of money supply, currency held by the public and Net demand deposits held by the commercial banks.

  Reason (R): Money supply is a stock variable and refers to the stock of money held by public in spendable for i.e., money supply refers to the stock of money in circulation in an economy.

   
  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer2)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Anything will be called money, if the law of country proclaims it to be money. It will be commonly accepted measure of value as it will be endowed with legal tender power (limited and unlimited). Thus money is what the law says it is'.

  Reason (R): Limited Legal tender money can be accepted upto a certain maximum limit. For example, in India, coins up to Rs. 1000 only (as per Coinage Bill, August 2011) can be accepted legally in payment. All currency notes have unlimited legal tender.

   
  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer3)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Barter system is also known as C-C Economy.

  Reason (R): Because the goods were exchanged for money.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer4)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Money supply is a stock concept.

  Reason (R): Because it is related to a particular point of time.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer5)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Money supply does not include RBI, Commercial Banks and Government.

  Reason (R): Because they are the users of money.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer6)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Double coincidence of wants is the Limitation of barter system.

  Reason (R): It was difficult and time-consuming to find a person who is not only willing to exchange goods but also possess that particular commodity which is required by the first person.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer7)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): \[{{M}_{1}}\] = C + OD + Time deposits with the banks.

  Reason (R): \[{{M}_{1}}\] = C + OD + Demand deposits with the banks.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer8)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Cheque is known as fiduciary money.

  Reason (R): It is accepted due to mutual trust between the payer and the payee.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer9)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Coinage Act was passed in 2011.

  Reason (R): Any one can make payments in coins but up to a limit of Rs. 1,000.

   
  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer10)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Paper currency is a limited legal tender.

  Reason (R): Any one can make payments in terms of paper currency up to any limit.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer11)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): Money is what money does.

  Reason (R): It is not accepted by everyone.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer12)

  Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.

  Assertion (A): There was a lack of store of wealth during barter system.

  Reason (R): There was limited arrangement of warehouses, cold storage, etc.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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