CBSE Questions for Class 12 Commerce Economics Money And Banking Quiz 12 - MCQExams.com

Which of the following is not a component of M1 measurement of money supply?
  • demand deposits
  • currency
  • other deposits
  • term deposits
In India, coins are issued by
  • State Bank of India
  • Reserve Bank of India
  • Ministry of Finance
  • Ministry of Urban Development
'A' has an item that 'B' wants and 'B' has a good that 'A' wants. This is referred to as _____ under the barter system of exchange.
  • Unit of account
  • Storage value
  • Double coincidence of wants
  • None of the above
Cash reserves of the government with the RBI, as a percentage of their total deposits refer to
  • cash reserve ratio
  • repo rate
  • reverse repo rate
  • statutory liquidity ratio
The central bank
  • is an apex bank
  • is the sole agency of note issuing
  • focuses on stability and growth of the economy
  • all of these
SLR refers to
  • cash reserves with the bank
  • gold reserves with the bank
  • reserves of unencumbered securities
  • all of these
Money is used as a standard for deferred payments.
  • True
  • False
  • Partially true
  • Incomplete statement
If LRR is equal to 25%, what will be the value of credit multiplier?
  • 4
  • 5
  • 6
  • Cannot be determined
Which of the following is not a part of M1?
  • Time deposit
  • Demand deposit
  • Both A and B
  • Neither A or B
What is meant by cash reserve ratio?
  • Fraction of total deposits kept with RBI.
  • Fraction of time deposits kept with RBI.
  • Fraction of demand deposits kept with RBI.
  • None of the above.
Legal reserve ratio in India is set by the commercial banks.
  • True
  • False
  • Partially true
  • Can't say
Which of the following measures of money supply is considered as monetary base?
  • M1
  • M2
  • M3
  • M4
At a given point in time, value of money multiplier is equal toWhat will be the value of LRR?
  • 10%
  • 15%
  • 20%
  • 25%
Which of the following reserves is kept with the commercial banks?
  • CRR
  • SLR
  • Both a and b
  • Neither a nor b
The Reserve Bank of India issues notes under which one of the following methods?
  • Fixed fiduciary system
  • Maximum fiduciary system
  • Minimum reserve system
  • Proprotional reserve system
Which of the following is qualitative method of Credit Control?
  • Bank Rate
  • Open Market Operation
  • Variable in the reserve requirement
  • Regulation of consumer credit
Money market arranges for ____________ and capital market provides for ____________ funds. 
  • long-term, short-term
  • long-term, short to medium-term
  • short-term, medium to long-term
  • medium-term, short to long-term
A department of supervision has been set up in the RBI with effect from _____.
  • 22nd October, 1993
  • 22nd November, 1993
  • 22nd September, 1993
  • 22nd December, 1993
Section $$131$$ of the Negotiable Instruments Act extends protection to the __________.
  • collecting banker
  • paying banker
  • advising banker
  • confirming banker
Choose the incorrect statement about securities.
  • In order to use dematerialising facilities one has to open a demat account.
  • Change from electronic format to physical form is called re-materialisation.
  • Once you dematerialise your securities you cannot rematerialise.
  • Change from physical form to electronic format is called dematerialisation.
The oldest central Bank in the world is _________.
  • The Reserve Bank of India
  • Swedish Central Bank
  • The Federal Reserve system
  • The Bank Nippon
Accrual bonds are also known as _____________.
  • Zero Coupon Bonds
  • Fixed interest Bonds
  • Flat Rate Bonds
  • Low Interest Bonds
Consortium approach to lending was introduced by the RBI in _______.
  • 1972
  • 1974
  • 1976
  • 1978
Match the items of List-I with the items of List-II and select the correct answer:
List-IList-II
(i) Private ownership and Free Enterprise(a) Secondary Market
(ii) Government ownership and Central Authority(b) Capitalism
(iii) The market for the sale and purchase of previously issued securities(c) Primary Market
(iv) The market for new long term capital(d) Socialism
  • $$(i) - (b), (ii) - (d), (iii) - (a), (iv) - (c)$$
  • $$(i) - (a), (ii) - (b), (iii) - (c), (iv) - (d)$$
  • $$(i) - (b), (ii) - (d), (iii) - (c), (iv) - (a)$$
  • $$(i) - (a), (ii) - (c), (iii) - (b), (iv) - (d)$$
Which of the following statements is not true with regard to money market?
  • The instruments traded are highly liquid.
  • Deals in unsecured and short-term debt instruments.
  • It is situated at specific locations.
  • It involves low market risk.
Money multiplier is equal to:
  • 1/CRR
  • 1/SLR
  • 1/LRR
  • None of the above
To reduce money supply in the economy, the RBI should __________ Bank Rate.
  • reduce
  • increase
  • nullify
  • denotify
Which of the following participants represent capital market?
  • Stock exchanges
  • Development banks
  • Commercial banks
  • All of the above
To reduce money supply in the economy, the RBI should __________ Statutory Reserve Requirements.
  • reduce
  • increase
  • nullify
  • denotify
Which of the following statements is not true with regard to capital market?
  • The funds are raised for a short period of time.
  • It is classified into two types.
  • Both debt and equity funds can be raised.
  • All of the above.
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