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Chapter 3 Money and Banking
NCERT Class 12 Introductory Macroeconomics • NCERT Series
MCQ
Page Ref: Page 34
Money primarily functions as:
A.
A production factor
B.
A medium of exchange
C.
A natural resource
D.
A capital good
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Correct Answer / Reference:
Option: B. A medium of exchange
Reference:
Found on Page Page 34
MCQ
Page Ref: Page 35
Which of the following is NOT a function of money?
A.
Medium of exchange
B.
Store of value
C.
Unit of account
D.
Direct barter
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Correct Answer / Reference:
Option: D. Direct barter
Reference:
Found on Page Page 35
MCQ
Page Ref: Page 34
The barter system suffered mainly because of:
A.
Excess production
B.
Lack of transportation
C.
Double coincidence of wants problem
D.
Government control
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Correct Answer / Reference:
Option: C. Double coincidence of wants problem
Reference:
Found on Page Page 34
MCQ
Page Ref: Page 35
Currency issued by the government is called:
A.
Commodity money
B.
Fiat money
C.
Metallic money
D.
Barter money
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Correct Answer / Reference:
Option: B. Fiat money
Reference:
Found on Page Page 35
MCQ
Page Ref: Page 39
Which institution has the authority to issue currency in India?
A.
SBI
B.
NABARD
C.
RBI
D.
Commercial banks
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Correct Answer / Reference:
Option: C. RBI
Reference:
Found on Page Page 39
MCQ
Page Ref: Page 36
Demand deposits are included in:
A.
Physical capital
B.
Money supply
C.
Government expenditure
D.
Tax revenue
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Correct Answer / Reference:
Option: B. Money supply
Reference:
Found on Page Page 36
MCQ
Page Ref: Page 38
Commercial banks create credit through:
A.
Tax collection
B.
Accepting deposits and lending
C.
Printing currency
D.
Foreign trade
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Correct Answer / Reference:
Option: B. Accepting deposits and lending
Reference:
Found on Page Page 38
MCQ
Page Ref: Page 38
The reserve ratio refers to:
A.
Ratio of exports to imports
B.
Fraction of deposits banks keep as reserves
C.
Government expenditure ratio
D.
Currency issued by RBI
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Correct Answer / Reference:
Option: B. Fraction of deposits banks keep as reserves
Reference:
Found on Page Page 38
MCQ
Page Ref: Page 39
The central bank of India is:
A.
SBI
B.
RBI
C.
ICICI
D.
PNB
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Correct Answer / Reference:
Option: B. RBI
Reference:
Found on Page Page 39
MCQ
Page Ref: Page 39
Which function is performed by the Reserve Bank of India?
A.
Retail trading
B.
Currency issuance
C.
Manufacturing goods
D.
Agricultural production
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Correct Answer / Reference:
Option: B. Currency issuance
Reference:
Found on Page Page 39