Money and Banking

Money and Banking

Multiple Choice

Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-

• full bodied money

• fait money

• fiduciary money

• credit money

Multiple Choice

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money

Multiple Choice

Commodity money can be best described as money that is

• backed up by a valuable material

• valuable based on the material that the money is made from

• used to purchase valuable materials

• valuable because a government says it is and people accept that it is valuable

Multiple Choice

A type of money that is backed by a material, such as gold, is referred to as

• certificate money

• representative money

• fiat money

• commodity money

Multiple Choice

When measuring the benefit provided by a good or service, this can be identified as

• economic value

• intrinsic value

• opportunity cost

• subjective value

Multiple Select

Which of these items are considered commodities?

• oil

• water

• agricultural crops

• precious metals like gold

Multiple Choice

This type of card allows you to withdraw money directly out of your checking account to pay for things...

• Credit Card

• Debit Card

• Gift Card

• E-Card

Multiple Choice

Which is not a use of money?

• Medium of exchange
• a store of value
• unit of account
• to start a fire

Multiple Choice

commercial bank creat credit money by way of --

• Time deposit

• Treasury Bill

• Bill of Exchange

• demand deposit

Multiple Choice

Money thai is issued by the authority of the government is called-

• full bodied money

• fait money

• fuduciary money

• all the above

Multiple Choice

Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-

• full bodied money

• fait money

• fiduciary money

• credit money

Multiple Choice

When inflation rate increases, Real value of money will be ________

• Increases

• Constant

• Decreases

Multiple Select

Purchasing power of money increases means we are able to

• Buy more goods with a little cash

• Buy less goods with more cash

• Buy same goods with less money

• Buy less goods with same money

Multiple Choice

The speculative motive for holding money is closely tied to what function of money?

• Store of wealth

• Unit of account

• Medium of exchange

• Standard of deferred payment

Multiple Choice

Of the three motives for holding money suggested by Keynes, which did he believe to be the

most sensitive to interest rates?

• The transactions motive.

• The precautionary motive.

• The speculative motive.

• The altruistic motive.

Multiple Select

Which of the following are the functions of money? Multi-select options.

• As a medium of exchange

• As a store of wealth

• As a means of valuating different types of goods and services

• As a mean of establishing future claims and payments

Multiple Choice

In case of full bodied money :

• commodity value>money value

• commodity value<money value

• commodity value=money value

• none of these

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Multiple Choice

What is the Cash Reserve Ratio (CRR)?

• the fraction of the deposits that commercial banks lend to the customers

• the fraction of the deposits that RBI must keep with commercial banks

• the fraction of the deposits that commercial banks must keep with RBI

Multiple Choice

Open market operation as an instrument of credit control are performed by

• Central bank of country

• the commercial bank pof country

• Both a and b

• none of these

Multiple Choice

Inflation is to be combated the RBI-

• Raise in CRR and lower SLR

• Lower CRR and raise SLR

• Raise both CRR and SLR

• none of these

Multiple Choice

Credit control means-

• Contraction of credit only

• Extention of credit only

• Extention and contraction of money supply

• none of these

Multiple Choice

SLR requires the commercial bank to build their liquid assets by way of

• Reserve of cash

• Reserve of gold

• resurve of unencumbered secirities

• all of these

Multiple Choice

Maximum credit that commercial bank can legally creat depends on their

• Gold Reserve

• legal reserve ratio( LRR)

• CRR

• SLR

Multiple Choice

commercial bank creat credit money by way of --

• Time deposit

• Treasury Bill

• Bill of Exchange

• demand deposit

Multiple Choice

Money thai is issued by the authority of the government is called-

• full bodied money

• fait money

• fuduciary money

• all the above

Multiple Choice

Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-

• full bodied money

• fait money

• fiduciary money

• credit money

Multiple Choice

Buying and selling of government securities by the central bank from/to banks is called?

• open market operations

• margin

• banking

Multiple Choice

The rate at which central bank lends to commercial banks is called?

• SLR

• CRR

• bank rate

Multiple Choice

What is the ratio of deposits which commercial banks are required to keep with themselves called?

• CRR

• SLR

• both

Multiple Choice

What is the reserve deposit ration (rdr)?

• the proportion of money RBI lends to commercial banks

• the proportion of total deposits commercial banks keep as reserves

• the total proportion of money that commercial banks lend to the customers