CBSE Questions for Class 12 Commerce Economics Money And Banking Quiz 5 - MCQExams.com

A money deposited in a bank that cannot be withdrawn for a preset fixed period of time is known as a ____________________.
  • term deposit
  • checking account
  • savings bank deposit
  • no frills account
As we all know, Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. What is this portion is called?
  • Statutory Liquidity Ratio
  • Cash Reserve Ratio
  • Bank Deposit
  • Reverse Repo
At which of the following rates does the Central Bank lend to banks against government securities?
  • Repo Rate
  • Reverse Repo Rate
  • Bank Rate
  • SLR
The rate below which banks cannot generally lend is called the _____________.
  • base rate
  • floor rate
  • REPO rate
  • call money rate
Which of the following is a payment and settlement system used by the banks in India?
  • Liquidity Adjustment Facility
  • Real Time Gross Settlement
  • Forward Rate Agreements
  • Central Depository Service
Many banks have adopted/launched a "Core Banking Solution" (CBS). Which of the following is a Core Banking Solution?
  • A marketing strategy adopted by the banks
  • A new type of ATM useful for rural population
  • A delivery channel for quick and fast delivery
  • A new product launched to help senior citizens only as they are not able to visit branches/ATMs frequently
The statistical technique used by Altman to distinguish between a bankrupt and a non bankrupt firm is ______________.
  • Multiple Discriminant Analysis
  • Correlation
  • Joint Probability
  • Multiple Regression Analysis
  • Both (B) and (D) above
What is the term used for the ratio of the Cash Reserves that the banks are required to keep with the RBI?
  • Liquidity ratio
  • SLR
  • CRR
  • Net demand and Time liability
Central bank grants loans to government.
  • True
  • False
The main objective of a central bank is to earn profit. 
  • True
  • False
Central bank also performs commercial banking business.
  • True
  • False
Credit rating is a quantitative credit control measure of the central bank.
  • True
  • False
Regulation of consumer credit is a quantitative credit control measure of the central bank.
  • True
  • False
The central bank works as a friend, philosopher and guide to commercial banks. 
  • True
  • False
Selective credit control affects the size of total credit in the economy.
  • True
  • False
Usually a central bank has the monopoly to issue notes.
  • True
  • False
A central bank is a lender of last resort.
  • True
  • False
Cash reserve ratio is fixed by the central bank. 
  • True
  • False
Credit money is created by the central bank of a country.
  • True
  • False
A country is treated a creditor nation if ________.
  • it has a history of more lending than borrowing
  • it has a history of more borrowing than lending
  • it has positive trade surplus
  • it has negative trade surplus
If a country's lending is more than its borrowing from the rest of the world,it is a _________.
  • net borrower
  • net lender
  • surplus state
  • deficit state
If a country's borrowing is more than its lending from the rest of the world,it is a _______.
  • net borrower
  • net lender
  • surplus state
  • deficit state
A country is treated a debtor nation if ______.
  • it has a history of more lending than borrowing
  • it has a history of more borrowing than lending
  • it has positive surplus
  • it has negative surplus
SETU means _________________________.
  • Small Employment & Talent Utilization
  • Self Enrolment & Talent Utilization
  • Self Employment & Talent Utilization
  • Self Employment & Talent Utility
The main functions of money include ________.
  • power indicator, Medium of exchange, Store value, Measurement of value
  • medium of exchange, Measurement of value, Store value, Standard of deferred payment
  • display of wealth, Source of financial power, Medium of exchange, Unit of measurement
  • source of wealth, Display of wealth, Store value, Standard of deferred payment
  • measurement of wealth, Source of financial power,Source of wealth creation, Measurement of capital
State True or False.
In barter transactions, goods or services are purchased for other goods or services. 
  • True
  • False
_________ would lead to fall in demand for money.
  • Inflation
  • Increase in real income
  • Increase in real rate of interest
  • Increase of wealth
When saving are given as a loan and borrower repays the amount, money serves the function of  ________.
  • unit of measurement
  • store value
  • standard of deferred payment
  • medium of exchange
Which of these statements is true?
  • Precautionary demand for money is due to uncertainty of income and expenditure
  • Uncertainty of future leads to precautionary demand for money
  • Precautionary demand for money is related to income level
  • All the three
Precautionary money balance is needed due to _________.
  • uncertainty of receipt of income and expenditure
  • conservative nature of human being
  • expectation of good investment opportunities
  • desire to be not out of money
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