Class 12 Macro Economics - Chapter 3: Money and Banking MCQ Questions

10 Questions 20 Minutes

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Your Class 12 Macro Economics Study Path

Question 1

Credit creation by the commercial bank is determined by

A all of the above

B Initial Deposits

C Statutory Liquidity Ratio

D Cash Reserve Ratio

Question 2

_______ is the main function of Central Bank.

A Advancing loans to public

B Accepting deposits from the public

C Credit creation

D Notes issue

Question 3

The ratio of total deposit that a commercial bank has to keep with the Reserve Bank of India is called

A Legal Reserve Ratio

B Cash Reserve Ratio

C Deposit Ratio

D Statutory Liquidity Ratio

Question 4

The monetary policy generally targets to ensure _______

A greater tax collections for the government

B stable foreign relations

C employment generation in the country

D Price stability in the economy

Question 5

_______ is the primary function of money.

A Store of value

B Standard of deferred payment

C Medium of exchange

D Transfer of value

Question 6

Initial deposits made by the people from their own resources are called

A term deposits

B primary deposits

C secondary deposits

D time deposits

Question 7

Banks are able to create credit many times more than initial deposits through

A advancing loans

B accepting deposits

C providing overdraft facilities

D secondary deposits

Question 8

______ is the rate of interest charged by the central bank on loans given to the commercial bank.

A Reverse Repo Rate

B Statutory Liquidity Ratio

C Cash Reserve Ratio

D Bank Rate

Question 9

In order to encourage investment in the economy, the Central Bank may ________

A Increase Bank Rate

B Sell Government securities in the open market

C Increase Cash Reserve Ratio

D Reduce Cash Reserve Ratio

Question 10

The creation is called credit creation.

A None of these

B secondary deposits

C primary deposits

D time deposits

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Class 12 Macro Economics - Chapter 3: Money and Banking MCQ Questions

Your Class 12 Macro Economics Study Path

Credit creation by the commercial bank is determined by

_______ is the main function of Central Bank.

The ratio of total deposit that a commercial bank has to keep with the Reserve Bank of India is called

The monetary policy generally targets to ensure _______

_______ is the primary function of money.

Initial deposits made by the people from their own resources are called

Banks are able to create credit many times more than initial deposits through

______ is the rate of interest charged by the central bank on loans given to the commercial bank.

In order to encourage investment in the economy, the Central Bank may ________

The creation is called credit creation.

Practice Complete!

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