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Money

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Who regulates money supply in India?

a)

Government of India

b)

Reserve Bank of India

c)

Commercial banks

d)

Planning Commission

2.

Assertion: Supply of money is a flow variable.

Reason: It is measured at a point of time.

a)

Assertion and Reason both are correct statements and Reason is correct explanation for Assertion.

b)

Assertion and Reason both are correct statements but Reason is not correct explanation for Assertion.

c)

Assertion is true but Reason is false.

d)

Assertion is false but Reason is true

3.

M1 of money supply does not include________.

a)

Currency held by public

b)

Other deposits in RBI

c)

Demand deposits with the Commercial Banks

d)

Net time deposits with banks

4.

Read the following dialogue between two people.

Ramesh: I want 1 kg of potatoes.

Suresh: What will you give in exchange?

Ramesh: I can give you two litres of milk in return for the potatoes.

Suresh: I don’t need milk. I want a pair of shoes.

WhichofthefollowingproblemisbeingfacedbyRameshandSureshintheirexchangeprocess?

a)

Lack of double coincidence of wants

b)

Absence of common unit of value

c)

Lack of store of value

d)

Lack of standard of deferred payment

5.

Which of the following functions of money simplifies the process of borrowing and lending?

a)

Store of value

b)

Medium of exchange

c)

Standard of deferred payments

d)

Unit of Value

6.

Measuring the value of goods and services refers to which of the following functions of money?

a)

Store of value

b)

Unit of value

c)

Standard of deferred payments

d)

Medium of exchange

7.

Demand deposit are __________.                                                                                                 

a)

(i) Chequeable deposits  

b)

Non-Chequeable deposits (ii)

c)

Deposits which can be withdraw on demand (iii)

d)

Both (i) and (iii)

8.

Banks create credit:

a)

out of nothing

b)

on the basis of their securities

c)

on the basis of their total assets

d)

on the basis of deposits

9.

If LRR is 205, the value of money multiplier would be:

a)

2

b)

3

c)

4

d)

5

10.

If LRR decreases from 25% to 20%, money multiplier will _____ from ____ to ____.

a)

Rise,5,4

b)

Rise,4,5

c)

Fall,5,4

d)

Fall,4,5