12th Class Economics Money And Banking Question Bank

done MCQs - Money Total Questions - 35

• question_answer1)
  The drawbacks of barter system:
  A)
  lack of transfer of value done clear
  B)
  lack of measure of value done clear
  C)
  lack of standard of deferred payments done clear
  D)
  All of the above done clear
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• question_answer2)
  Who regulates money supply?
  A)
  Government of India       done clear
  B)
  Central Bank done clear
  C)
  Commercial Bank done clear
  D)
  Planning Commission done clear
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• question_answer3)
  Which of the following is not a problem of barter system?
  A)
  Store of value done clear
  B)
  Double coincidence of wants done clear
  C)
  Unit of account done clear
  D)
  Unemployment done clear
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• question_answer4)
  Money supply includes:
  A)
  all deposits in bank done clear
  B)
  only demand deposits in banks done clear
  C)
  only time deposits in banks done clear
  D)
  currency with the banks done clear
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• question_answer5)
  Supply of money refers to quantity of money:
  A)
  as on 31st March done clear
  B)
  during any specified period of time done clear
  C)
  as at any point of time done clear
  D)
  during a fiscal year done clear
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• question_answer6)
  ......... is the main source of money supply in an economy.
  A)
  Central Bank done clear
  B)
  Commercial Bank done clear
  C)
  Both [a] and [b] done clear
  D)
  Government done clear
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• question_answer7)

  Read the following dialogue between two people:

  Gita: I want 1 kg of potatoes.

  Reena: What will you give in exchange?

  Gita: I can give you 2 litres of milk in return for the potatoes.

  Reena: I don't need milk. I want a pair of shoe.

  Which of the following problem is being faced by Gita and Reena in their exchange process?

  A)
  Lack of double coincidence of wants done clear
  B)
  Absence of common unit of value done clear
  C)
  Lack of store of value done clear
  D)
  Lack of standard of deffered payments done clear
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• question_answer8)
  Vivan has 2 litres of milk and he wants rice against it, then how much rice he should get? Which drawback of barter system is highlighted?
  A)
  Double coincidence of wants done clear
  B)
  Lack of common measure of value done clear
  C)
  Lack of store of value done clear
  D)
  Lack of standard of deferred payments done clear
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• question_answer9)
  Money supply is a:
  A)
  flow concept done clear
  B)
  stock concept done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
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• question_answer10)
  Ideal supply of money is:
  A)
  when there is inflation done clear
  B)
  when there is deflation done clear
  C)
  when there is neither inflation nor deflation done clear
  D)
  None of the above done clear
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• question_answer11)
  Barter system lacks:
  A)
  common measure of value done clear
  B)
  a standard of deferred payments done clear
  C)
  double coincidence of wants done clear
  D)
  All of the above done clear
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• question_answer12)
  Primary function of the money is:
  A)
  transfer of value done clear
  B)
  store of value done clear
  C)
  medium of exchange done clear
  D)
  All of the above done clear
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• question_answer13)
  Which of the following is not a function of money?
  A)
  Medium of exchange done clear
  B)
  Unit of account done clear
  C)
  Standard of deferred payments done clear
  D)
  Store of metal done clear
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• question_answer14)
  Which of the following is the component of \[{{M}_{1}}\] measure of money supply (\[{{M}_{1}}\] is one of the measure of money supply of RBI)?
  A)
  Time deposit done clear
  B)
  Demand deposits done clear
  C)
  Treasury bill done clear
  D)
  None of these done clear
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• question_answer15)
  Money supply is defined in the economy as:
  A)
  amount of money held by the public in an economy at any given time. done clear
  B)
  amount of money held by public during a period of time. done clear
  C)
  amount of money held by government at a point of time. done clear
  D)
  amount of money held by government during a period of time. done clear
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• question_answer16)
  Bank money is that money which is:  
  A)
  printed by RBI done clear
  B)
  printed by the Government done clear
  C)
  generated in the form of credit creation done clear
  D)
  None of the above done clear
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• question_answer17)
  Which items are not included in \[{{M}_{1}}\] ?
  A)
  Inter-bank deposits done clear
  B)
  Other deposits with RBI done clear
  C)
  Currency and coins with public done clear
  D)
  Net demand deposits with banks done clear
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• question_answer18)
  Which function of money is known as unit of account?
  A)
  Medium of exchange done clear
  B)
  Measure of value done clear
  C)
  Standard of deferred payments done clear
  D)
  Store of value done clear
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• question_answer19)
  Which function of money has overcome the problem of lack of double coincidence of wants?
  A)
  Measure of value done clear
  B)
  Medium of exchange done clear
  C)
  Standard of deferred payments done clear
  D)
  Store of value done clear
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• question_answer20)
  Money supply consists of:
  A)
  currency done clear
  B)
  deposit done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
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• question_answer21)
  Barter system means:
  A)
  indirect exchange of one commodity for another done clear
  B)
  direct exchange of one commodity for another done clear
  C)
  exchange of commodity for money done clear
  D)
  None of the above done clear
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• question_answer22)
  In the barter system:
  A)
  goods are exchanged for goods done clear
  B)
  goods are exchanged for money done clear
  C)
  there is no exchange of goods done clear
  D)
  transaction of goods become very easy done clear
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• question_answer23)
  Medium of exchange function of money suggests that:
  A)
  value of all goods and services can be measured in terms of money. done clear
  B)
  transfer of value can easily be performed with the help of money. done clear
  C)
  any commodity can be sold or purchased through the medium of money. done clear
  D)
  money can be used for future payments. done clear
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• question_answer24)
  In India, suppliers of money are:
  A)
  government of the country done clear
  B)
  banking system of the country done clear
  C)
  Both [a] and [b] done clear
  D)
  None of the above done clear
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• question_answer25)
  Difference between  \[{{M}_{3}}\] and \[{{M}_{1}}\] is:
  A)
  Savings deposit done clear
  B)
  Time deposit done clear
  C)
  Current deposit done clear
  D)
  All of the above done clear
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• question_answer26)
  Which function of money has separated the acts of sale and purchase?
  A)
  Standard of deferred payments done clear
  B)
  Store of value done clear
  C)
  Measure of value done clear
  D)
  Medium of exchange done clear
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• question_answer27)
  Money serves as a common denomination. The function of money highlighed is:
  A)
  Store of value done clear
  B)
  Standard of deferred payments done clear
  C)
  Unit of account done clear
  D)
  Medium of exchange done clear
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• question_answer28)
  Demand deposits include:
  A)
  saving account deposits and fixed deposits done clear
  B)
  saving account deposits and current account deposits done clear
  C)
  current account deposits and fixed deposits done clear
  D)
  All types of deposits done clear
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• question_answer29)
  Money is denned as:
  A)
  commonly accepted measure of value done clear
  B)
  a store of value done clear
  C)
  a standard of deferred payments done clear
  D)
  All of the above done clear
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• question_answer30)
  Component of money supply:
  A)
  coins done clear
  B)
  paper currency done clear
  C)
  demand deposits done clear
  D)
  All of these done clear
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• question_answer31)
  The component not included in money supply:
  A)
  currency with private individuals done clear
  B)
  currency with business firms done clear
  C)
  stock of gold with RBI done clear
  D)
  All of the above done clear
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• question_answer32)
  The maximum limit to accept payment in coins:
  A)
  Rs. 500 done clear
  B)
  Rs. 1000 done clear
  C)
  Rs. 250 done clear
  D)
  None of these done clear
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• question_answer33)
  High powered money includes:
  A)
  currency and demand deposits done clear
  B)
  demand deposits and saving deposits done clear
  C)
  currency held by public and cash reserves with banks done clear
  D)
  None of the above done clear
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• question_answer34)
  People desire to hold money balance for:
  A)
  transaction motive done clear
  B)
  speculative motive done clear
  C)
  precautionary motive done clear
  D)
  All of the above done clear
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• question_answer35)
  RBI publishes figures for ———— alternative measure of money supply.
  A)
  \[{{M}_{1}}\] done clear
  B)
  \[{{M}_{2}}\] done clear
  C)
  \[{{M}_{3}}\] done clear
  D)
  All of these done clear
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