Money

Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called _________.

• Fixed deposits

• Demand deposits

• Bonds

Why do banks keep a small proportion of the deposits as cash with themselves?

• To extend loan to the poor

• To extend loan facility

• To pay salary to their staff

• To pay the depositors who might come to withdraw money

Money as a medium of exchange has removed the problem of …………. of wants.

An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

• Credit(loan)

• Chit fund

• Bank

• Cheque

The modern forms of money include ____________ and ____________ .

A ____________ is the apex institution of monetary system of a country.

Currency (coins and notes) is a ____________ which cannot be refused in payment for transactions.

What is the primary function of money in an economy?

• Medium of exchange

• Store of value

• Unit of account

• All of the above

Which of the following is considered a characteristic of money?

• Durability

• Colorfulness

• Weight

• Size

What is fiat money?

• Money backed by a physical commodity

• Money that has value because of government regulation

• Money that is made of precious metals

• Money that is used in barter systems