TEST-1 CH -3 MONEY AND CREDIT

Money is based on

• double coincidence of wants

• single coincidence of wants

• Both (a) and (b)

• none of these

Money is a measure of

• currency

• value

• transfer

• all of these

Why are demand deposits considered as money?

• Payments can be made by cheques instead of cash.

• Banks accept the deposits and also pay an interest rate on the deposits.

• The RBI of Indian issues currency notes on behalf of the Central Government.

• Demand deposits are closely linked to the working of the modern banking system.

Who issues the currency notes in India?

• Currency notes are issued by the Finance Commission.

• All the nationalized banks can issue the currency notes.

• Only Reserve Bank of India can issue currency notes.

• Any individual or organization can issue cur¬rency notes with the permission of the govt.

Which among the following banks issues currency notes on behalf of the Central Government in India?

• RBI

• State Bank of India

• Bank of India

• Central Bank of India

…………. implies the direct exchange of goods against goods without the use of money.

• Money sytem

• Credit system

• Barter system

• None of these

Modern forms of money includes:

• paper notes

• gold coins

• silver coins

• copper coins

Terms of credit is with respect to:

• interest rate

• Collateral

• documentation

• All of these

At present which form of money is increasingly used apart from paper money?

• Commodity money

• Metallic money

• Plastic money

• All of these

Currency is issued in India by:

• Commercial bank

• regional rural bank

• nationalised bank

• Reserve bank of India