Money & Banking -1

Money & Banking -1

12th Grade

10 Qs

quiz-placeholder

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Money & Banking -1

Money & Banking -1

Assessment

Quiz

Other

12th Grade

Practice Problem

Medium

Created by

amit bhadauria

Used 27+ times

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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Value of Money multiplier __________ with an increase in Cash Reserve Ratio (CRR)

increases

decreases

remains unchanged

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Supply of money refers to

currency held with the public

currency held by Reserve Bank of India

currency held by the public and demand deposits of the public with commercial banks

currency held in the government account

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following function of money has led to the development of financial system?

medium of exchange

common measure of value

store of value

standard of deferred payments

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

_____________ is the main source of money in an economy.

central bank

commercial banks

both central bank & commercial banks

government

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If Reserve deposit ratio is 25%, the value of money multiplier will be

2

4

8

12

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Loans offered by commercial banks ___________ the money supply in the economy.

increases

decreases

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What will be the legal reserve ratio if the initial deposit of Rs. 25,000 crore lead to a creation of total deposits of Rs. 1,25,000 crore?

25%

20%

125%

12.5%

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