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ECONOMICS QUIZ

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

As a custodian of foreign exchange which of the following functions are performed by a central bank:-

a)

clearing house

b)

Maintaining of foreign exchange reserves

c)

Maintaining foreign exchange rate

d)

As a agent to represent country in IMF

2.

Buying and selling of foreign exchange by central bank to stabilise the value of domestic currency is called:-

a)

Clearing house

b)

Managed floating

c)

lender of last resort

d)

None of the above

3.

Which function of central bank helps to settle the inter banking claims that is cheques:-

a)

Lender of last resort

b)

Custodian of foreign exchange

c)

Clearing house

d)

Controller of credit

4.

As a clearing house, a central bank helps to:-

a)

Save time

b)

Save labour

c)

save cash

d)

Maintain the foreign exchange rate

5.

How commercial bank contributes towards money supply?

a)

Accepting deposits

b)

Credit creation

c)

By providing locker facilities

d)

None of the above

6.

Name the methods through which central bank control credit creation of commercial banks.

a)

Quantitative methods

b)

Qualitative methods

c)

none of these

d)

Both of these

7.

CASH RESERVE RATIO is ............ method to control credit creation of commercial bank.

a)

quantitative method

b)

Qualitative method

c)

Both

d)

None of these

8.

credit rationing is a ___________method of controlling credit creation.

a)

Qualitative method

b)

Quantitative method

c)

Both

d)

None of these

9.

Central bank had the power to control the credit creating capacity of commercial banks

a)

Fslse

b)

True

c)

Can’t say

10.

A central bank has direct dealing with public that is , it accepts the deposits and advances loan to public

a)

True

b)

False

c)

Can’t say