12th Standard CBSE - Economics - Money and Banking

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Question - 1

Money is most liquid of all assets because

  • A it includes shares and equities
  • B money itself is medium of exchange
  • C it does not have general acceptability
  • D it has many functions

Question - 2

The difference between narrow money and broad money is

  • A coins and currency
  • B only currency
  • C saving deposits of banks
  • D time deposits with banks

Question - 3

Measurement of value of all goods and services refers to which of the following of money?

  • A medium of exchange
  • B unit of value 
  • C standard of deferred payments
  • D store of value

Question - 4

Money in static sense refers to

  • A store of value
  • B medium of exchange
  • C standard of deferred payments
  • D All of the above

Question - 5

Banks not only accept deposits but also  ............ savings

  • A Distribute
  • B Mobilise
  • C Convert
  • D None of these

Question - 6

.............  involves discounting or purchasing of commercial bills arising out of credit sales.

  • A Cash credit
  • B Bill Financing
  • C Overdraft
  • D None of these

Question - 7

The Process of credit creation in an economy  is affected by

  • A The Amount of initial deposits
  • B The LRR
  • C Both (a) and (b)
  • D None of these

Question - 8

Central bank of a country does not deal with ..............

  • A State government
  • B General public
  • C Central government
  • D Commercial Banks

Question - 9

Central bank control credit creation of banks by ............

 

  • A CRR
  • B SLR
  • C Both (a) and (b)
  • D None of these

Question - 10

What can RBI do, if it wants to increase credit in the economy?

  • A Decrease bank rate and CRR
  • B Increase bank rate and CRR
  • C Increase bank rate and decrease CRR
  • D All of the above