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WorksheetsMONEY AND BANKING
Total questions: 64
Worksheet time: 36mins
What is the defect of the barter system?
(A) Lack of double coincidence of wants
(B) Difficulty in the measurement of value
(C) Difficulty in store of value
(D) All of these
What is the Cash Reserve Ratio (CRR)?
the fraction of the deposits that commercial banks lend to the customers
the fraction of the deposits that RBI must keep with commercial banks
the fraction of the deposits that commercial banks must keep with RBI
What possess general acceptability?
Bank draft
Money
Bill of exchange
Which bank is called lender of last resort?
Commercial bank
Agricultural bank
Central bank
Which bank enjoys monopoly power of Note issue?
NABARD
Commercial Bank
Central Bank
What is the name of Central Bank in India?
SBI
RBI
PNB
What is the name of Central Bank in India?
SBI
RBI
PNB
Deposits which are payable after the expiry of a fixed period are called -
time deposits.
demand deposits.
NONE
What is the ratio of deposits which commercial banks are required to keep with themselves called?
CRR
SLR
both
The rate at which central bank lends to commercial banks is called?
SLR
CRR
bank rate
Which of the following is a commonly accepted definition of money?
Any good which is commonly uiesd as a store of value
Any good which is exchanged foe gold at a fixed rate.
Any good which is acceptable to a bank
Any good which is commonly accepted as medium of exchange
Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-
full bodied money
fait money
fiduciary money
credit money
Money thai is issued by the authority of the government is called-
full bodied money
fait money
fuduciary money
all the above
commercial bank creat credit money by way of --
Time deposit
Treasury Bill
Bill of Exchange
demand deposit
Maximum credit that commercial bank can legally creat depends on their
Gold Reserve
legal reserve ratio( LRR)
CRR
SLR
SLR requires the commercial bank to build their liquid assets by way of
Reserve of cash
Reserve of gold
resurve of unencumbered secirities
all of these
an arrangement by which people borrow money from a bank to buy a house, and pay back the money over a period of years
mortgage
overdraft
share
refund
What type of money would this be?
Commodity
Fiat
Representitive
Gold
Which of the following is a commonly accepted definition of money?
Any good which is commonly uiesd as a store of value
Any good which is exchanged foe gold at a fixed rate.
Any good which is acceptable to a bank
Any good which is commonly accepted as medium of exchange
Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-
full bodied money
fait money
fiduciary money
credit money
supply of money is a
Flow variable
Stock variable
real flow
none of these
In India there are four alternative measures of money supply: M1,M2, M3, and M4 of these M1=
Currency with people
Currency with people+ Demand deposdit
Currency with people+ Demand deposdit+ Other deposit with RBI
none of these
What do you mean by credit creation by commercial banks
process of creation of foreign exchange
process of loan creation
process of total withdrawal creation
process of total deposit creation
Who can issue one rupee note in India
RBI Governor
Government
Finance Secretary
Finance Ministry
Money is something that is
Accepted by banks
Locally accepted
Regionally accepted
Universally accepted
Choose the incorrect statement:
All coins (50p, Rs1, Rs5) are token coins
All currency notes issued by RBI are promissory notes
Credit money the value of of monetary purposes is less than its value for non monetary purposes
Demand deposits are claims of creditors against banks
Currency in India is issued on the basis of
Legal reserve ratio
Minimum reserve system
Cash reserve ratio
Which is not related to banking in India
Currency issued by RBI is inconvertible
All notes except one rupee is issued by RBI
Legal tender money is also called Fiat money because it serves as money by the order of RBI
Putting all currency notes and coins into circulation, is done by RBI
Broad definition of money includes currency, demand deposits, saving deposits and time deposits
Can't say
False
True
High powered money includes
currency and demand deposits
demand deposits and saving deposits
currency held by the public and the cash reserves with banks
None of these
The component not included in money supply
Currency with private individuals
Currency with business firms
Stock of gold with RBI
All of these
Which of the following is not a function of central bank
Banker's supervisor
Lender of last resort
Money creation
Controller of credit
The currency created by the central bank is called
High powered money
Money
Bank money
Money supply
.......... are called legal tenders
Demand deposit
Time deposits
Inter-bank deposit
currency notes and coins
Deposit creation process comes to an end when
fresh deposit with bank become zero
LRR become zero
money multiplier becomes zero
total reserves equal initial deposits
If the total deposit created by commercial banks is Rs 20000 cr and LRR is 20%,then amount of initial deposit will be
Rs 2000 cr
Rs 3000 cr
Rs 4000 cr
Rs 14000 cr
Money which is accepted as a medium of exchange because of the trust between the payer and the payee is called
Full bodied money
credit money
Fiat money
fiduciary money
In case of credit money
money value=commodity value
money value>commodity value
money value<commodity value
none of these
Transfer of value has become easier with
evolution of money
storage of money
measure of value
all of these
The concept of global economy has come into existence due to
store of value
transfer of value
measure of value
none of these
Term deposits are those
against which no cheque can be issued
against which no interest is paid to the depositor
which are fixed deposits
Both (a) and (c)
Which of the following system is followed by RBI for issuing currency?
Proportionate system
Simple deposit system
Minimum reserve system
Fixed fiduciary issue system
Money is the most liquid of all the asset because
it is a medium of exchange
it is an unit of account
it act as a store of value
it is a standard of deferred payment
which of the following agency is responsible for issuing Rs 1 currency note in India?
RBI
Ministry of commerce
Ministry of finance
Niti aayog
(a) term describes low cheaply and easily an asset maybe converted into a medium of exchange.
Barter transactions require a (a) and it will make the transactions happen.
The values of goods and services are stated in units of (a) , just as time is measured in minutes and distance in feet.
(a) is a means of storing today's purchasing power to purchase, say, a house or a car tomorrow.
Money serves as a (a) , that is, a payment that is deferred to the future is usually stated as a sum of money.
(a) money is that type of money which is backed by a commodity such as gold but is valuable as money because of government pronouncement.
A type of commodity money in which the commodity itself circulates as money is called (a)
(a) money is paper money that represents a claim to a specific quantity of some commodity
The concept of 'safe place' to store money ultimately evolved into the (a) of today.
people can trade in goods and services which feature of money does this describe?
unit of account
standard of deferred payments
medium of exchange
store of value
with money it is possible to buy goods on credit. which function of money it shows?
store of value
standard of deferred payments
unit of account
none of the above
Business is allowed to do transaction even if there is no sufficient balance in the bank account is called (a)
if person can turn his assets into cash quickly without loss is called
(a)
which role of central bank represents when banks are temporarily short of cash
(a)
who can implement monetary policy in the country?
(a)
_____________ is a bank that can lend money to other banks in times of crisis
Congress
Central Bank
Department of the Interior
National Bank
Which of the following is one of the three functions of money?
scarcity
portability
divisibility
store of value
What are M1 and M2?
fiat money
specie
currency
money supplies
