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Asked/Added Questions From NCERT:


Question 1. Asked on :09 August 2021:12:12:20 AM

What happens when central bank increases margin?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 2. Asked on :09 August 2021:12:12:05 AM

What happens when central bank purchases securities in open market?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 3. Asked on :09 August 2021:12:11:44 AM

What happens when central bank sale securities in open market?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 4. Asked on :09 August 2021:12:11:34 AM

What happens when central bank decreases CRR?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 5. Asked on :09 August 2021:12:11:19 AM

What happens when central bank increases SLR?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 6. Asked on :09 August 2021:12:09:31 AM

What happens when central bank increases reverse repo rate?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 7. Asked on :09 August 2021:12:09:16 AM

What happens when central bank increases bank rate?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 8. Asked on :09 August 2021:12:09:05 AM

What happens when central bank decreases bank rate?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 9. Asked on :09 August 2021:12:08:52 AM

What happens when central bank increases repo rate?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 10. Asked on :09 August 2021:12:08:32 AM

What happens when central bank reduces repo rate?

a) Money supply increases

b) Money supply decreases

c) No effect on money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 11. Asked on :09 August 2021:12:08:19 AM

What is the difference between amount of loan and market value of securities called?

a) Spread

b) Margin

c) Repo rate

d) Bank rate

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 12. Asked on :09 August 2021:12:08:05 AM

What is the amount which commercial banks are required to keep with themselves compulsorily?

a) CRR

b) SLR

c) LRR

d) Repo rate

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 13. Asked on :09 August 2021:12:04:59 AM

What is the rate at which commercial banks keep their reserves with central banks?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 14. Asked on :09 August 2021:12:04:47 AM

What is the rate at which central bank gives loan to commercial bank with collateral?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 15. Asked on :09 August 2021:12:04:31 AM

 What is the rate at which central bank gives loan to commercial bank without collateral?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12






Question 20. Asked on :09 August 2021:12:02:23 AM

By advising the government from time to time, central bank acts as a

a) Banker

b) Agent

c) Financial advisor

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 21. Asked on :09 August 2021:12:02:11 AM

By managing the responsibility of public debt, central bank acts as

a) Banker

b) Agent

c) Financial advisor

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 22. Asked on :09 August 2021:12:02:02 AM

By carrying out all the banking activities, central bank acts as

a) Banker

b) Agent

c) Financial advisor

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 23. Asked on :09 August 2021:12:01:49 AM

Central bank acts as

a) Agent

b) Banker

c) Financial advisor

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12



Question 25. Asked on :09 August 2021:12:01:26 AM

RBI has the sole authority to issue currency in India. Which function is highlighted here?

a) Custodian of cash reserve

b) Bank of issue

c) Banker's bank

d) Controller of credit

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 26. Asked on :08 August 2021:11:58:52 PM

Which function leads to uniformity in note circulation?

a) Bank of issue

b) Custodian of cash reserve

c) Controller of money supply

d) Banker's bank

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 27. Asked on :08 August 2021:11:58:41 PM

What is the central bank of USA?

a) RBI

b) World Bank

C Union Bank

d) Federal Reserve System

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 28. Asked on :08 August 2021:11:58:29 PM

What is the central bank of India?

a) RBI

b) LIC

c) SBI

d) UTI

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 29. Asked on :08 August 2021:11:58:18 PM

What does central bank do?

a) Regulates the banking system

b) Operates the monetary system

c) Controls the banking system

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 30. Asked on :08 August 2021:11:57:59 PM

Which of the following is an apex body in India?

a) SBI

b) Private Banks

c) Central Banks

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 31. Asked on :08 August 2021:11:57:50 PM

Which of the following is not a function of central bank?

a) Accept deposits

b) Custodian of foreign exchange

c) Bank of issue

d) Supervision

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 32. Asked on :08 August 2021:11:57:38 PM

LIC and UTI are not banks because:

a) They do not advance loans

b) They do not accept deposits

c) They neither accept deposits nor advance loans

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 33. Asked on :08 August 2021:11:57:26 PM

If initial deposits are Rs. 500 and LRR is 10%,what is money multiplier?

a) 2

b) 20

c) 10

d) 1

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 34. Asked on :08 August 2021:11:57:13 PM

Which of the following is not a bank?

a) PNB

b) SBI

c) LIC

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 35. Asked on :08 August 2021:11:56:53 PM

Commercial banks work for the purpose of

a) Welfare

b) Earning profit

c) Both (a) and (b)

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12



Question 37. Asked on :08 August 2021:11:54:10 PM

What are the total deposits if LRR is 25% and initial deposits are Rs. 100000?

a) 250000

b) 500000

c) 400000

d) 800000

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 38. Asked on :08 August 2021:11:53:54 PM

If LRR is 20%, what is the money multiplier?

a) 2

b) 10

c) 5

d) 4

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 39. Asked on :08 August 2021:11:53:39 PM

Money multiplier is also known as

a) Credit multiplier

b) Deposit multiplier

c) Both (a) and (b)

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 40. Asked on :08 August 2021:11:52:55 PM

The fraction to be kept legally from the deposits is called

a) CRR

b) SLR

c) LRR

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 41. Asked on :08 August 2021:11:52:37 PM

 The difference between two interest rates is called:

a) Spread

b) Margin

c) Profit

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 42. Asked on :08 August 2021:11:51:49 PM

Which of the following is not the primary function of commercial banks?

a) Accepting deposits

b) Advancing loans

c) Both (a) and (b)

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 43. Asked on :08 August 2021:11:49:29 PM

Which of the following is not a commercial bank?

a) State bank of India

b) Punjab National Bank

c) Union Bank

d) Canara Bank

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 44. Asked on :08 August 2021:11:49:18 PM

Who issues Rs. 2 and more denominations currency notes and coins?

a) RBI

b) Government

c) Commercial banks

d) Ministry of Finance

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 45. Asked on :08 August 2021:11:49:08 PM

India follows which system for issuing currency?

a) Foreign exchange system

b) Paper currency system

c) Minimum reserve system

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 46. Asked on :08 August 2021:11:48:55 PM

Who is the monetary authority in India?

a) RBI

b) Government

c) Commercial banks

d) Ministry of Finance

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 47. Asked on :08 August 2021:11:48:40 PM

What is the other name of money whose intrinsic value is much lower than its face vaule?

a) Representative money

b) Credit money

c) Full bodied money

d) Legal tender money 

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 48. Asked on :08 August 2021:11:48:31 PM

What is the name of money which is usually made of paper?

a) Credit money

b) Full bodied money

c) Representative money

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 49. Asked on :08 August 2021:11:48:17 PM

The money in which commodity value = money value is called

a) Credit money

b) Full bodied money

c) Representative money

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 50. Asked on :08 August 2021:11:47:27 PM

 Which of the following is not a part of legal tender money?

a) Limited legal tender money

b) Unlimited legal tender money

c) Optional money

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 51. Asked on :08 August 2021:11:45:35 PM

The money that is legally accepted by everyone in the economy is called

a) Legal tender money

b) Plastic money

c) Commodity money

d) Credit money

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 52. Asked on :08 August 2021:11:45:12 PM

Money supply includes

a) All deposits with banks

b) Demand deposits with banks

c) Other deposits with commercial banks

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12



Question 54. Asked on :08 August 2021:11:43:40 PM

My consists of

a) Currency held by public

b) Demand deposits with commercial banks

c) Other deposits with RBI

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 55. Asked on :08 August 2021:11:43:29 PM

Which of the following are not included in high powered money?

a) Currency held by public

b) Cash reserves held by banks

c) Demand deposits with banks

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 56. Asked on :08 August 2021:11:43:18 PM

High powered money is produced by

a) RBI

b) Government

c) Commercial banks

d) Both (a) and (b)

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 57. Asked on :08 August 2021:11:42:18 PM

M3 and M4 makes up

a) Narrow money supply

b) Broad money supply

c) Broken money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 58. Asked on :08 August 2021:11:41:49 PM

My and M2 makes up

a) Narrow money supply

b) Broad money supply

c) Broken money supply

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 59. Asked on :08 August 2021:11:40:31 PM

Which of the following is the least liquid form of money supply?

a) M1

b) M2

c) M3

d) M4

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 60. Asked on :08 August 2021:11:39:24 PM

Which of the following is the most liquid form of money supply?

a) M1

b) M2

c) M3

d) M4

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 61. Asked on :08 August 2021:11:39:10 PM

Which of the following is not a feature of money supply?

a) It includes money held by public

b) It includes money held by banks

c) It is a stock concept

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 62. Asked on :08 August 2021:11:38:40 PM

Which of the following is not a measure of money supply?

a) M1

b) Mo

c) M2

d) M4

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 63. Asked on :08 August 2021:11:37:50 PM

Money supply is which concept?

a) Stock

b) Flow

c) Monetary

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 64. Asked on :08 August 2021:11:37:38 PM

Which function allows the payment to be delayed till future date?

a) Medium of exchange

b) Measure of value

c) Store of value

d) Standard of deferred payments

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 65. Asked on :08 August 2021:11:36:59 PM

Which function considers the value of the money in one unit?

a) Medium of exchange

b) Measure of value

c) Store of value

d) Standard for deferred payments

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 66. Asked on :08 August 2021:11:36:09 PM

Which function removes the problem of double coincidence of wants?

a) Measure of value

b) Medium of exchange

c) Store of value

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 67. Asked on :08 August 2021:11:35:48 PM

Money is which concept?

a) Stock

b) Flow

c) Monetary

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 68. Asked on :08 August 2021:11:35:14 PM

Money contains:

a) Coins

b) Currency notes

c) Cheques

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 69. Asked on :08 August 2021:11:33:43 PM

What is the thing which is generally accepted by everyone as a medum of exchange?

a) Money

b) Goods

c) Services

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 70. Asked on :08 August 2021:11:33:08 PM

Which of the following is the function of money?

a) Medium of exchange

b) Store of value

c) Measure of vale

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 71. Asked on :08 August 2021:11:32:24 PM

What solves the problem of double coincidence of wants?

a) Goods

b) Banks

c) Money

d) All of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


Question 72. Asked on :08 August 2021:11:26:22 PM

The system in which trade can be done by exchange of goods and services is called

a) Barter system

b) Monetary system

c) Goods system

d) None of the above

-Added by Master Purushottam Economics » Money And Banking MCQ - Class 12


 

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