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Money

Total questions: 137

Worksheet time: 1hrs 12mins

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.

Deposits which are payable after the expiry of a fixed period are called -

a)

time deposits.

b)

demand deposits.

c)

NONE

8.

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

a)

CRR

b)

SLR

c)

both

9.

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

a)

SLR

b)

CRR

c)

bank rate

10.

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

a)

open market operations

b)

margin

c)

banking

11.

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

12.

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

13.

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

14.

commercial bank creat credit money by way of --

a)

Time deposit

b)

Treasury Bill

c)

Bill of Exchange

d)

demand deposit

15.

Maximum credit that commercial bank can legally creat depends on their

a)

Gold Reserve

b)

legal reserve ratio( LRR)

c)

CRR

d)

SLR

16.

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

17.

Credit control means-

a)

Contraction of credit only

b)

Extention of credit only

c)

Extention and contraction of money supply

d)

none of these

18.

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

a)

CRR

b)

SLR

c)

Moral suasions

d)

Managed floting

19.

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

20.

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

21.

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

22.

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

23.

What possess general acceptability?

a)

Bank draft

b)

Money

c)

Bill of exchange

24.

Which bank is called lender of last resort?

a)

Commercial bank

b)

Agricultural bank

c)

Central bank

25.

Which bank enjoys monopoly power of Note issue?

a)

NABARD

b)

Commercial Bank

c)

Central Bank

26.

What is the name of Central Bank in India?

a)

SBI

b)

RBI

c)

PNB

27.

Deposits which are payable after the expiry of a fixed period are called -

a)

time deposits.

b)

demand deposits.

c)

NONE

28.

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

a)

CRR

b)

SLR

c)

both

29.

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

a)

SLR

b)

CRR

c)

bank rate

30.

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

a)

open market operations

b)

margin

c)

banking

31.

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

32.

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

33.

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

34.

supply of money is a

a)

Flow variable

b)

Stock variable

c)

real flow

d)

none of these

35.

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

36.

commercial bank creat credit money by way of --

a)

Time deposit

b)

Treasury Bill

c)

Bill of Exchange

d)

demand deposit

37.

Maximum credit that commercial bank can legally creat depends on their

a)

Gold Reserve

b)

legal reserve ratio( LRR)

c)

CRR

d)

SLR

38.

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

39.

Credit control means-

a)

Contraction of credit only

b)

Extention of credit only

c)

Extention and contraction of money supply

d)

none of these

40.

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

a)

CRR

b)

SLR

c)

Moral suasions

d)

Managed floting

41.

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

42.

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

43.

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

(a)  

44.

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

(a)  

45.

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

(a)  

46.

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

47.

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

48.

What possess general acceptability?

a)

Bank draft

b)

Money

c)

Bill of exchange

49.

Which bank is called lender of last resort?

a)

Commercial bank

b)

Agricultural bank

c)

Central bank

50.

Which bank enjoys monopoly power of Note issue?

a)

NABARD

b)

Commercial Bank

c)

Central Bank

51.

What is the name of Central Bank in India?

a)

SBI

b)

RBI

c)

PNB

52.

Deposits which are payable after the expiry of a fixed period are called -

a)

time deposits.

b)

demand deposits.

c)

NONE

53.

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

a)

CRR

b)

SLR

c)

both

54.

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

a)

SLR

b)

CRR

c)

bank rate

55.

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

a)

open market operations

b)

margin

c)

banking

56.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
57.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
58.

Which among the following is considered to be the most liquid asset?

a)

Gold

b)

Money

c)

Land

d)

Treasury bond

59.

The number of times a unit of money exchanges hands during a unit period of time is known as:

a)

velocity of circulation of money

b)

momentum of circulation of money

c)

count of circulation of money

d)

circulation of money

60.

Currency notes and coins are called as:

a)

FLAT MONEY

b)

FIAT MONEY

c)

LEGAL TENDER MONEY

d)

BOTH 2 AND 3

61.

Direct exchange of goods against goods is called:

a)

CHARTER

b)

MONEY

c)

BARTER

d)

NONE OF THESE

62.

What are the advantages of Barter System ?

a)

Simple System

b)

More Mutual Co-operation

c)

No Economic Disparities

d)

All the above

63.

Which one is included in the primary function of money ?

a)

Medium of Exchange

b)

Measure of Value

c)

Both of the above

d)

Store of value

64.

By supply of money we mean :

a)

Money deposited in bank

b)

Money available with the public

c)

Deposits with post office savings bank

d)

All of these

65.

Who regulates money supply ?

a)

Govt, of India

b)

Reserve Bank of India

c)

Commercial Bank

d)

Planning Commission

66.

The primary function of Commercial Bank is ?

a)

ACCEPTING DEPOSITS

b)

GIVING LOAN

c)

CREATING CREDIT

d)

ALL OF THESE

67.

Which is the Agency Function of Commercial Banks ?

a)

Advancing Loans

b)

Accepting Deposits

c)

Act as Trustee

d)

Locker Facility

68.

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

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

69.

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

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

70.

.......... 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

71.

Demand deposit created by the commercial bank are called

a)

High powered money

b)

Money

c)

Bank money

d)

Time deposit

72.

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

73.

The currency created by the central bank is called

a)

High powered money

b)

Money

c)

Bank money

d)

Money supply

74.

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

a)

Demand deposit

b)

Time deposits

c)

Inter-bank deposit

d)

currency notes and coins

75.

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

76.

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)

77.

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

78.

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

79.

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

80.

In case of credit money

a)

money value=commodity value

b)

money value>commodity value

c)

money value<commodity value

d)

none of these

81.

Transfer of value has become easier with

a)

evolution of money

b)

storage of money

c)

measure of value

d)

all of these

82.

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

83.

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)

84.

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

85.

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

a)

CRR

b)

SLR

c)

Bank rate

d)

Reverse repo rate

86.

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

87.

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

88.

Who can issue one rupee note in India

a)

RBI Governor

b)

Government

c)

Finance Secretary

d)

Finance Ministry

89.

What do you mean by credit creation by commercial banks

a)

process of creation of foreign exchange

b)

process of loan creation

c)

process of total withdrawal creation

d)

process of total deposit creation

90.

Money is something that is

a)

Accepted by banks

b)

Locally accepted

c)

Regionally accepted

d)

Universally accepted

91.

Choose the incorrect statement:

a)

All coins (50p, Rs1, Rs5) are token coins

b)

All currency notes issued by RBI are promissory notes

c)

Credit money the value of of monetary purposes is less than its value for non monetary purposes

d)

Demand deposits are claims of creditors against banks

92.

Currency in India is issued on the basis of

a)

Legal reserve ratio

b)

Minimum reserve system

c)

Cash reserve ratio

93.

Which is not related to banking in India

a)

Currency issued by RBI is inconvertible

b)

All notes except one rupee is issued by RBI

c)

Legal tender money is also called Fiat money because it serves as money by the order of RBI

d)

Putting all currency notes and coins into circulation, is done by RBI

94.

Broad definition of money includes currency, demand deposits, saving deposits and time deposits

a)

Can't say

b)

False

c)

True

95.

The maximum limit to accept payment in coins

a)

Rs 500

b)

Rs 1000

c)

Rs 250

d)

Rs 10,000

96.

High powered money includes

a)

currency and demand deposits

b)

demand deposits and saving deposits

c)

currency held by the public and the cash reserves with banks

d)

None of these

97.

The component not included in money supply

a)

Currency with private individuals

b)

Currency with business firms

c)

Stock of gold with RBI

d)

All of these

98.
When a person wants to sell exactly what the other person wants to buy. This situation is known as
a)
Barter System
b)
Double coincidence of wants
c)
Trading
d)
None of these
99.
Which authority regulate and overlook the credit sysetm and economic activites in India
a)
NSSO
b)
CBI
c)
Finance Minister
d)
RBI
100.
Which one is an example of Informal Source of Credit
a)
Banks
b)
Cooperative Societies
c)
Money Lender
d)
All of these
101.
What is the form of money in medieval period?
a)
Cowries
b)
Paper Notes
c)
Metallic Coins
d)
Barter System
102.
Who is the founder of Grameen Bank of Bangladesh?
a)
Mohammad Yunus
b)
Mohammad Kasim
c)
Mohammad Tuglaq
d)
Mohammad Zakir
103.
A financial institution which accepts deposits from public and provide loans to them.
a)
Share Market
b)
Insurance Company
c)
Banks
d)
All of these
104.
What prevents the poor from getting bank credit?
a)
absence of collateral
b)
documentation procedure
c)
high rate of interest
d)

All of these

105.
Debt-trap means :
a)
Ability to pay back loan
b)
Extravagance
c)
None of the above
d)
Increasing debt
106.
Which one is the following is the important characteristic of modern form of currency?
a)
It is made from precious metal
b)
It is made from thing of everyday use
c)
It is authorized by commercial banks
d)
It is authorized by the Government of the country
107.
What will be collateral for a car loan?
a)

Stamp and Vehicle registration papers

b)
Registration papers
c)
Installments
d)
Interest payment
108.
Money can be best described as
a)
Medium of transaction
b)
Medium of exchange
c)
Deposit in Banks
d)
Payment through cheque
109.
An asset that the borrowers own, and use this as a guarantee to the lender, until the loan is repaid.
a)
Security
b)
Collateral
c)
Property
d)
All of these
110.
Which one of the following is not a modern form of money?
a)
Demand deposits
b)
Paper currency
c)
Coins
d)
Precious metals
111.
Who has power to sign One rupees paper note in India?
a)
Governer of RBI
b)
President
c)
Finance Secretary
d)
Finance Minister
112.
More money purchasing less goods and services means
a)
Deflation
b)
Inflation
c)
Stagflation
d)
None of these
113.
Interest payment will be higher on a home loan on account of
a)
high tenure of loan
b)
lack of proper documentation
c)
high risk of borrower profile
d)
All of these
114.
Reserve bank of India grants loans to
a)
General public
b)
Private Companies
c)
Commercial Banks
d)
All of these
115.
Number of Reserve Banks in a country is
a)
Two
b)
Three
c)
One
d)
Five
116.
In a SHG most of the decisions regarding loan activities are taken by
a)
Banks
b)
Members
c)
Non-government organisation
d)
Cooperative
117.
Reserve Bank of India was nationalised on
a)
1st January 1947
b)
1st January 1948
c)
1st January 1949
d)
1st January 1960
118.
When a person wants to sell exactly what the other person wants to buy. This situation is known as
a)
Barter System
b)
Double coincidence of wants
c)
Trading
d)
None of these
119.
Which authority regulate and overlook the credit sysetm and economic activites in India
a)
NSSO
b)
CBI
c)
Finance Minister
d)
RBI
120.
Which one is an example of Informal Source of Credit
a)
Banks
b)
Cooperative Societies
c)
Money Lender
d)
All of these
121.
What is the form of money in medieval period?
a)
Cowries
b)
Paper Notes
c)
Metallic Coins
d)
Barter System
122.
Who is the founder of Grameen Bank of Bangladesh?
a)
Mohammad Yunus
b)
Mohammad Kasim
c)
Mohammad Tuglaq
d)
Mohammad Zakir
123.
A financial institution which accepts deposits from public and provide loans to them.
a)
Share Market
b)
Insurance Company
c)
Banks
d)
All of these
124.
Which one is the following is the important characteristic of modern form of currency?
a)
It is made from precious metal
b)
It is made from thing of everyday use
c)
It is authorized by commercial banks
d)
It is authorized by the Government of the country
125.
Money can be best described as
a)
Medium of transaction
b)
Medium of exchange
c)
Deposit in Banks
d)
Payment through cheque
126.
Which one of the following is not a modern form of money?
a)
Demand deposits
b)
Paper currency
c)
Coins
d)
Precious metals
127.
Who has power to sign One rupees paper note in India?
a)
Governer of RBI
b)
President
c)
Finance Secretary
d)
Finance Minister
128.
Reserve bank of India grants loans to
a)
General public
b)
Private Companies
c)
Commercial Banks
d)
All of these
129.
Number of Reserve Banks in a country is
a)
Two
b)
Three
c)
One
d)
Five
130.
Reserve Bank of India was nationalised on
a)
1st January 1947
b)
1st January 1948
c)
1st January 1949
d)
1st January 1960
131.

Which one of the following statements is most appropriate regarding transaction made in money?

a)

it is the easiest way

b)

it is safest way

c)

it is the cheapest way

d)

it promotes trade

132.

Which one of the following is not a feature of money?

a)

Medium of exchange

b)

Lack of divisibility

c)

A store of value

d)

A unit of account

133.

Since money acts as an intermediate in the exchange process, it is called:

a)

(a) value for money

b)

(b) exchange value

c)

(c) medium of exchange

d)

(d) none of these

134.

Under Barter System the exchange of goods require ____.

a)

Double coincidence of wants

b)

A good transport system

c)

Advertising

d)

Communication


135.

Which of the following does not come under modern forms of money?

a)

(a) Currency

b)

(b) Cheque Payments

c)

(c) Demand deposits

d)

(d) Loan Payments

136.

Money :

a)

(a) eliminates double-coincidence of wants

b)

(b) acts as a common measure of value

c)

(c) acts as a store of value

d)

(d) all the above

137.

At present which form of money is increasingly used apart from paper money?

a)

(a) bitcoins

b)

(b) Metallic money

c)

(c) Plastic money

d)

(d) All the above

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