CBSE Class 12 Money and Banking Multiple Choice Questions with Answers. MCQ Questions Class 12 Money and Banking with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Money and Banking with Answers to know their preparation level.
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MCQ Questions Class 12 Money and Banking with Answers - Set - 1
Question 1:
What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these
Correct Answer – (D)
Question 2:
The central bank can increase the availability of credit by:
(A) Rasing repo rate
(B) Raising reverse repo rate
(C) Buying government securities
(D) Selling government securities
Correct Answer – (D)
Question 3:
Institution that accepts deposits for lending purpose is known as __________
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public
Correct Answer – (A)
Question 4:
Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these
Correct Answer – (D)
Question 5:
Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these
Correct Answer – (D)
MCQ Questions Class 12 Money and Banking With Answers
Question 6:
Giving permission to withdraw money by an amount more than deposited to is known as _________
(A) Advance
(B) Overdraft
(C) Loan
(D) None of these
Correct Answer – (B)
Question 7:
Which of the following is the function of a commercial bank?
(A) Accepting deposits
(B) Credit creation
(C) Agency function
(D) All of these
Correct Answer – (D)
Question 8:
In order to encourage investment in the economy, the Central Bank may ________
(A) Reduce Cash Reserve Ratio
(B) Increase Cash Reserve Ratio
(C) Sell Government securities in the open market
(D) Increase Bank Rate
Correct Answer – (A)
Question 9:
Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these
Correct Answer – (D)
Question 10:
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
