wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

MONEY AND BANKING

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

What is the Cash Reserve Ratio (CRR)?

a)

the fraction of the deposits that commercial banks lend to the customers

b)

the fraction of the deposits that RBI must keep with commercial banks

c)

the fraction of the deposits that commercial banks must keep with RBI

2.

What is the reserve deposit ration (rdr)?

a)

the proportion of money RBI lends to commercial banks

b)

the proportion of total deposits commercial banks keep as reserves

c)

the total proportion of money that commercial banks lend to the customers

3.

What possess general acceptability?

a)

Bank draft

b)

Money

c)

Bill of exchange

4.

Which bank is called lender of last resort?

a)

Commercial bank

b)

Agricultural bank

c)

Central bank

5.

Which bank enjoys monopoly power of Note issue?

a)

NABARD

b)

Commercial Bank

c)

Central Bank

6.

What is the name of Central Bank in India?

a)

SBI

b)

RBI

c)

PNB

7.

What is the ratio of deposits which commercial banks are required to keep with themselves called?

a)

CRR

b)

SLR

c)

both

8.

Buying and selling of government securities by the central bank from/to banks is called?

a)

open market operations

b)

margin

c)

banking

9.

The rate at which central bank lends to commercial banks is called?

a)

SLR

b)

CRR

c)

bank rate

10.

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

11.

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

12.

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

13.

commercial bank creat credit money by way of --

a)

Time deposit

b)

Treasury Bill

c)

Bill of Exchange

d)

demand deposit

14.

Credit control means-

a)

Contraction of credit only

b)

Extention of credit only

c)

Extention and contraction of money supply

d)

none of these

15.

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

16.

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

17.

_____________ is a bank that can lend money to other banks in times of crisis

a)

Congress

b)

Central Bank

c)

Department of the Interior

d)

National Bank

18.

_____________ is money by government decree, has no alternative value

a)

Gold standard

b)

Specie

c)

Barter

d)

Fiat money

19.

____________ is money in the form of gold or silver coins

a)

Fiat

b)

Shilling

c)

Specie

d)

Pence

20.

Value that is based on an opinion of a person, society, etc. is what type of value?

a)

economic value

b)

intrinsic value

c)

subjective value

d)

speculative value

21.

Intrinsic value is best defined by which of the follow?

a)

value that is measured by an opinion

b)

value that is measured by the thought that the price of the good will rise in the future

c)

a general statement on the usefulness of a good or service

d)

value that is based on scarcity, usefulness, and the labor and materials that went into production

22.

Which of these are functions of money?

a)

medium of exchange that allows the trade of goods and services

b)

holds value over time

c)

standard of value that allows comparison of the value of goods related to one another

d)

used as the only means of trade between nations

23.

A type of money that is backed by a material, such as gold, is referred to as

a)

certificate money

b)

representative money

c)

fiat money

d)

commodity money

24.

Commodity money can be best described as money that is

a)

backed up by a valuable material

b)

valuable based on the material that the money is made from

c)

used to purchase valuable materials

d)

valuable because a government says it is and people accept that it is valuable

25.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices