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Money and Banking

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is a commonly accepted definition of money?

a)

Any good which is commonly uiesd as a store of value

b)

Any good which is exchanged foe gold at a fixed rate.

c)

Any good which is acceptable to a bank

d)

Any good which is commonly accepted as medium of exchange

2.

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

a)

full bodied money

b)

fait money

c)

fiduciary money

d)

credit money

3.

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

a)

full bodied money

b)

fait money

c)

fuduciary money

d)

all the above

4.

supply of money is a

a)

Flow variable

b)

Stock variable

c)

real flow

d)

none of these

5.

In India there are four alternative measures of money supply: M1,M2, M3, and M4 of these M1=

a)

Currency with people

b)

Currency with people+ Demand deposdit

c)

Currency with people+ Demand deposdit+ Other deposit with RBI

d)

none of these

6.

commercial bank creat credit money by way of --

a)

Time deposit

b)

Treasury Bill

c)

Bill of Exchange

d)

demand deposit

7.

Maximum credit that commercial bank can legally creat depends on their

a)

Gold Reserve

b)

legal reserve ratio( LRR)

c)

CRR

d)

SLR

8.

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

a)

Reserve of cash

b)

Reserve of gold

c)

resurve of unencumbered secirities

d)

all of these

9.

Credit control means-

a)

Contraction of credit only

b)

Extention of credit only

c)

Extention and contraction of money supply

d)

none of these

10.

Which of the following is not a tools of credit control?

a)

CRR

b)

SLR

c)

Moral suasions

d)

Managed floting

11.

Inflation is to be combated the RBI-

a)

Raise in CRR and lower SLR

b)

Lower CRR and raise SLR

c)

Raise both CRR and SLR

d)

none of these

12.

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

a)

Central bank of country

b)

the commercial bank pof country

c)

Both a and b

d)

none of these

13.

commercial bank contribute to the supply of mioney by the way of

(a)  

14.

Rationing of credit is the ------------ methods of control money supply in the economy.

(a)  

15.

------------- relate the instant loan requirement of the commercial bank.

(a)