CBSE Questions for Class 12 Commerce Economics Money And Banking Quiz 9 - MCQExams.com

Which of the following is quantitative method of Credit Control? 
  • Moral Suasion
  • Open Market Operation
  • loans
  • Regulation of consumer credit
To regulate inflation, the RBI should _________ Government Securities.
  • sell
  • purchase
  • discount
  • denotify
Which of the following will not be included under Narrow Money?
  • Currency in circulation
  • Demand Deposits
  • Time Deposits
  • All of these
The Central Bank has direct dealings with the public in mobilization of deposits. This statement is -
  • True
  • False
  • Partially True
  • Nothing can be said
To reduce money supply in the economy, the Government should __________ Public Borrowings.
  • reduce
  • increase
  • nullify
  • denotify
Generally, the Revenues of the Central Bank consist of:
  • Dealings in Government Securities and Interest on Advances and Loans given to Government and other Banks / Financial Institutions
  • Interest charged on Loans green to Industry and Commerce, Charges for services rendered, etc.
  • Both (a) and (b)
  • Neither (a) nor (b)
The Central Bank of a country is a _____________.
  • charitable Institution
  • profit seeking Institution
  • non-Profit seeking Institution
  • all of the above
Majority of the dealings of the Central Bank are with:
  • Central and State Governments
  • Commercial Banks and other Financial Institutions
  • Both (a) and (b)
  • Public in general
To increase money supply in the economy, the RBI should ___________ Bank Rate.
  • reduce
  • increase
  • nullify
  • denotify
In order to control credit ________________.
  • CRR should be increased and Bank Rate should be decreased
  • CRR should be reduced and Bank Rate should be reduced
  • CRR should be increased and Bank Rate should be increased
  • CRR should be reduced and Bank Rate should be increased
Which of the following is not a quantitative measure of credit control?
  • Bank Rate Policy
  • Open Market Operation
  • Consumer Credit Regulation
  • Variable Reserve Requirement
Over a period of 60 years since independence, the aggregate Bank Deposits have -
  • Increased
  • Decreased
  • Remained constant
  • Nothing can be said
Lender of the Last Resort means ________________.
  • government coming to the rescue of poor families
  • central Bank comes to rescue of Commercial Banks in times of need of funds
  • deficit Financing
  • distribution of essential goods in Fair Price Shops
The Central Bank is responsible for __________ economic policies.
  • framing and formulating
  • implementing and executing
  • both (a) & (b)
  • none of the above
Which of the following policies is usually formulated and implemented by the Central Bank of a country?
  • Monetary Policy
  • Fiscal Policy
  • Export-Import Policy
  • Prices and Incomes Policy
The Central Bank has to act closely with the:
  • Finance Ministry
  • Other Economic Ministries
  • Both (a) & (b)
  • None of the above
When the Bank Rate increases, the demand for loans _______.
  • reduces
  • increases marginally
  • increases drastically
  • remains unchanged
Which of the following policies forms a part of the Monetary Policy?
  • International Trade Policy
  • Exchange Rate Policy
  • Prices and Incomes Policy
  • Export-Import Policy
Reduction of CRR/ SLR & dismantling of Administered Interest Rate Structure are both parts of
  • Industrial Reforms in India
  • External Sector Reforms in India
  • Land Reforms in India
  • Banking Reforms in India
When Deficit Financing increases, the RBI __________ to curb the excess liquidity.
  • increases CRR
  • decreases bank rate
  • resorts to open market purchases
  • raises tax rate
NABARD is the Apex Bank for _________ credit in India.
  • Real Estate
  • Small Scale Industries
  • Agriculture
  • None of the above.
At present (Sep. 2014), SLR is _________ per cent.
  • 22.50
  • 30
  • 22
  • 40
What is the minimum CRR limit for a commercial bank to be deposited with RBI?
  • 3%
  • 10%
  • 5%
  • 4.5%
Which is the soft lending arm of the World Bank?
  • IDA
  • IFC
  • MIGA
  • ICSID
Which of the following is an instance of near money?
  • Coins
  • Demand deposits
  • Bills of exchange
  • Furniture
One rupee note in India is signed by ____________.
  • RBI Governor
  • Union Finance Minister
  • Secretary, Finance Ministry
  • Secretary, Commerce Ministry
___________ is the most liquid measure of money supply.
  • M1
  • M2
  • M3
  • M4
Which one of the following methods is not used by the RBI?
  • Bank Rule Policy
  • Open Market Operations
  • Changes in the Cash Reserve Ratio
  • Devaluation of Rupee
SLR rate in was decreased to _________ in 2012.
  • 10%
  • 15%
  • 23%
  • 20%
Which of the following is not a necessary characteristic of money?
  • It is a unit of account
  • It is a store of value
  • It is of intrinsic value
  • It is generally acceptable
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