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Money and banking

Total questions: 20

Worksheet time: 39mins

Name
Class
Date
1.

............. is the rate at which commercial banks borrow from central bank in emergency

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

2.

........... is the ratio of deposits which bank keep with the central bank

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

3.

.......... is the rate at which commercial banks borrow short term funds from the central bank by selling their financial securities to the central bank

a)

CRR

b)

SLR

c)

Bank rate

d)

Repo rate

4.

Demand deposit created by the commercial bank are called

a)

High powered money

b)

Money

c)

Bank money

d)

Time deposit

5.

Which of the following is not a function of central bank

a)

Banker's supervisor

b)

Lender of last resort

c)

Money creation

d)

Controller of credit

6.

The currency created by the central bank is called

a)

High powered money

b)

Money

c)

Bank money

d)

Money supply

7.

.......... are called legal tenders

a)

Demand deposit

b)

Time deposits

c)

Inter-bank deposit

d)

currency notes and coins

8.

Deposit creation process comes to an end when

a)

fresh deposit with bank become zero

b)

LRR become zero

c)

money multiplier becomes zero

d)

total reserves equal initial deposits

9.

If an economy is to control recession like most of the Euro-zone nations, which of the following is appropriate

a)

Reducing repo rate

b)

Reducing CRR

c)

Both (a) and (b)

d)

None (a) and (b)

10.

If the total deposit created by commercial banks is Rs 20000 cr and LRR is 20%,then amount of initial deposit will be

a)

Rs 2000 cr

b)

Rs 3000 cr

c)

Rs 4000 cr

d)

Rs 14000 cr

11.

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

a)

Full bodied money

b)

credit money

c)

Fiat money

d)

fiduciary money

12.

Electronic transfer of money in terms of credit/debit entries of the account holders in the banks is called

a)

e-marketing

b)

e-business

c)

e-money

d)

e-banking

13.

In case of credit money

a)

money value=commodity value

b)

money value>commodity value

c)

money value<commodity value

d)

none of these

14.

Transfer of value has become easier with

a)

evolution of money

b)

storage of money

c)

measure of value

d)

all of these

15.

The concept of global economy has come into existence due to

a)

store of value

b)

transfer of value

c)

measure of value

d)

none of these

16.

Term deposits are those

a)

against which no cheque can be issued

b)

against which no interest is paid to the depositor

c)

which are fixed deposits

d)

Both (a) and (c)

17.

Which of the following system is followed by RBI for issuing currency?

a)

Proportionate system

b)

Simple deposit system

c)

Minimum reserve system

d)

Fixed fiduciary issue system

18.

............is the rate at which the central bank borrow funds from commercial bank

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

19.

Money is the most liquid of all the asset because

a)

it is a medium of exchange

b)

it is an unit of account

c)

it act as a store of value

d)

it is a standard of deferred payment

20.

which of the following agency is responsible for issuing Rs 1 currency note in India?

a)

RBI

b)

Ministry of commerce

c)

Ministry of finance

d)

Niti aayog