Macro-Economcs | Money And Banking | Class 12 MCQs Question Paper

Macro-Economcs | Money And Banking | Class 12 MCQs Question Paper

60 Most Imortportant Questions of Economics 12th Class Board Exam With Answers Key


Q1. Who creates credit in the economy?

(A) Government
(B) Reserve Bank of India
(C) commercial bank
(D) none of these

Answer - C

Q2. Which of the following is not a deductive measure of credit control?

(A) Open Market Activities
(B) Bank Rate
(C) Moral pressure
(D) Change in Cash Fund Ratio

Answer - C

Q3. high powerful currency

(A) Currency + Reserve
(B) Currency + Demand Deposit
(C) Currency + Term Deposit
(D) none of these

Answer - A

Q4. Money supply includes-

(A) Currency issued by Monetary Authority
(B) Demand Deposit
(C) Term Deposit
(D) only (A) and (B)

Answer - D

(Class 12 MCQs Question Paper)

Q5. The price of one currency as another currency is called

(A) Bilateral Notional Exchange Rate
(B) exchange rate
(C) Real Exchange Rate
(D) only (A) and (B)

Answer - D
Q6. Who is called the ultimate lender?

(A) commercial bank
(B) to the moneylender in the rural area
(C) Regional Rural Bank
(D) Reserve Bank of India

Answer - D

Q7. currency exchange. because the medium

(A) It is easily convertible into another commodity
(B) It has universal acceptance
(C) Money is the most liquid of assets
(D) all of them

Answer - D

Q8. Which statement is not correct about currency notes?

(A) It is called paper money
(B) It is also called statutory letter
(C) it has no intrinsic value
(D) Its face value is less than that of the coin

Answer - C

Q9. currency deposit ratio is

(A) Money held by people in currency + Money held in the form of bank deposits
(B) Money held by people in currency / Money held in the form of bank deposits
(C) Money held by people in currency – Money held in the form of bank deposits
(D) Money held by people in currency – Money held in the form of bank deposits

Answer - A

Q10. Which of the following is included under the primary function of money?

(A) medium of exchange
(B) measure of value
(C) both (A) and (B)
(D) accumulation of value

Answer - C
Q11. Which of the following is included under the secondary function of money?

(A) Measurement of deferred payment
(B) Accumulation of value
(C) Value Transfer
(D) all of them

Answer - D

Q12. According to who among the following, “Money is the pivot around which the whole of economics revolves.” ,

(A) Cannes
(B) Robertson
(C) Marshal
(D) Hate

Answer - C

Q13. Where were coins first used?

(A) Lydia
(B) Bhutan
(C) Libya
(D) none of these

Answer - A

Q14. According to who among the following, “Money is that commodity which has omnipresence”.

(A) Nap
(B) Cannes
(C) Seligman
(D) Hartley Withers

Answer - C

Q15. According to who among the following, “Money is that commodity which is generally acceptable as a medium of exchange and at the same time which also performs the function of store of value”.

(A) Marshal
(B) Robertson
(C) Crowther
(D) Eli

Answer - C
Q16. The English word "money" is derived from the Latin word moneta which means

(A) Money
(B) Check
(C) Draft
(D) none of these

Answer - A
Q17. Which of the following is included in the contingency act of money?

(A) Credit Basis
(B) Basis of distribution of social income
(C) Helpful in liquidity movement of capital
(D) all of them

Answer - D

Macro-Economcs, Money And Banking. Class 12 MCQs Question Paper

Q18. currency is a commodity

(A) which is a measure of value
(B) accepted as exchange
(C) which is the medium of exchange
(D) all of them

Answer - D
Q19. Which of the following are the qualities of the best currency?

(A) Utility
(B) Affordability
(C) Durable
(D) all of them

Answer - D
Q20. Which of the following are the demerits of currency?

(A) Promotion of debt system
(B) Rise of class struggle
(C) encouragement of temptation
(D) all of them

Answer - D
Q21. involved in currency

(A) Pricing
(B) to offer a medium of exchange
(C) accumulating value
(D) all of them

Money And banking class 12

Answer - D
Q22. The main function of money is

(A) medium of exchange
(B) Accumulation of value
(C) Measurement of value
(D) all of them

Answer - D
Q23. Which of the following are the main objectives of credit control?

(A) Establishing price stability
(B) To stabilize the foreign exchange rate
(C) To take measures to increase production and employment
(D) all of them

Answer - D
Q24. Which of the following statement is correct?

(A) Bank rate is the rate at which the central bank is ready to lend to the commercial banks of the country
(B) There is a difference between the bank rate and the interest rate.
(C) Bank rate is the re-cut rate of the central bank
(D) all of them

Answer - D
Q25. Which of the following is not a quantitative measure of credit control?

(A) Bank Rate
(B) Moral pressure
(C) Open Market Activities
(D) Change in Cash Fund Ratio

Answer - B
Q26. Reserve Bank of India was established

(A) 1947
(B) 1935
(C) 1937
(D) 1945
(Class 12 MCQs Question Paper)

Answer - B
Q27. monetary policy is concerned

(A) Public Expenditure
(B) by taxes
(C) public debt
(D) Open Market Activities

Answer - D
Q28. Who does the work of issuing paper notes in the country?

(A) commercial bank
(B) Central Bank
(C) World Bank
(D) Industrial Bank

money and banking class 12 mcq

Answer - B

Q29. central bank controls credit

(A) through bank rate
(B) through open market process
(C) through CRR
(D) all of them

Answer - A

Q30. What is the function of the central bank as the economic advisor to the government?

(A) in the form of economic policies
(B) in the form of devaluation
(C) as a trade policy
(D) all of them

Answer - D
Q31. Which of the following are the difficulties of credit control?

(A) Credit other than bank credit
(B) Lack of control over all the banks
(C) Lack of control over the final consumption of credit
(D) all of them

Answer - D
Q32. When was the Reserve Bank of India nationalized?

(A) 1st January, 1949.
(B) January 1, 1950
(C) 1st March, 1951
(D) February 2, 1949

Answer - A
Q33. Narasimham Committee is related to which of the following?

(A) Tax Reforms
(B) Agricultural Reforms
(C) Banking Reforms
(D) Infrastructure Reforms

Answer - C
Q34. Banking Ombudsman Scheme announced

(A) January, 1978
(B) December 26, 1997
(C) 26 September 1997.
(D) December 25, 1991

Answer - B
Q35. Who among the following has been included under the Banking Ombudsman Scheme?

(A) All Schedule Banks :
(B) Co-operative Bank
(C) Commercial Bank
(D) all of them

Answer - D
Q36. Which of the following committee was formed to improve customer service in banks?

(A) Raja Chalaiya Committee
(B) Goiporia Committee
(C) Verma Committee
(D) Chakravati Committee

Answer - B
Q37. For the revival and restructuring of weak public sector banks. Which of the following committees was formed?

(A) Verma Committee
(B) Rekhi Committee
(C) Goiporia Committee
(D) Narsimhak Committee

Answer - A
Q38. Who is the custodian of Indian banking system?

(A) Reserve Bank of India
(B) State Bank of India
(C) Unit Trust of India
(D) Life Insurance Corporation of India Samat

Answer - A
Q39. For the first time, the Reserve Bank of India announced guidelines for issuing licenses to new banks in the free sector.

(A) 22nd January, 1993
(B) March 15, 1995
(C) 1st April, 1999
(D) none of these

Answer - A
Q40. Banking sector reforms started in India

(A) 1969
(B) in 1981
(C) in 1991
(D) in 2001

Answer - C
Q41. 14 large scheduled commercial banks nationalized in India

(A) 1949
(B) 1955
(C) 1969
(D) in 2000

Answer - C
Q42. Which committees were formed for banking reforms?

(A) Narasimham Committee (1991)
(B) Goiporia Committee (1991)
(C) Verma Committee (1999)
(D) all of them

Answer - D
Q43. What are the essential conditions of barter system?

(A) limited exchange area
(B) limiting needs
(C) Economically backward society
(D) all of them

Answer - D
Q44. Which of the following are the advantages of barter system?

(A) Simple System
(B) increase in mutual cooperation
(C) no economic inequalities
(D) all of them

Answer - D
Class 12 Economics (Money & Banking) Objective Question Answer 2022
Q45. Which of the following are the difficulties of barter system?

(A) absence of double coincidence
(B) Difficulty in object segmentation
(C) widespread lack of universal value
(D) all of them

Answer - D
Q46. According to who among the following, “Currency. He is the one who does the work of money." ,

(A) Hate
(B) Cannes
(C) Prof. Thomas :
(D) Hartley Withers

Answer - D
Q47. The main function of commercial bank is

(A) To control credit
(B) lending to other banks
(C) Accepting deposits of customers
(D) all of them

Answer - C
Q48. What is Central Bank of India?

(A) commercial bank
(B) Central Bank
(C) Private Bank
(D) none of these

Answer - A
Q49. Who is the central bank of India?

(A) Central Bank
(B) Punjab Bank
(C) Reserve Bank of India
(D) none of these

Answer - C
Q50. Which of the following are the limitations of credit creation of a commercial bank?

(A) Quantity of currency of the country
(B) Liquidity preference of money
(C) interest rate
(D) all of them

Answer - D
Q51. Which of the following statement is correct?

(A) Central bank is the apex bank of the country
(B) Central bank is owned by the government
(C) The central bank operates the banking system of the country.
(D) all of them

Answer - D
Q52. Which of the following are the functions of the central bank?

(A) monopoly of note issue
(B) Government Bank
(C) custodian of foreign exchange funds
(D) all of them

Answer - D
Q53. Which currency is issued by the central bank?

(A) currency in circulation
(B) Coins.
(C) credit money
(D) all of these

Answer - A
Q54. The word 'Bank' is derived from 'Banco', in which language did it originate?

(A) Italian
(B) Latin
(C) American
(D) none of these

Answer - A
Q55. Where was the 'Bank of Venus' established for the first time?

(A) Italy in 1157
(B) in America in 1157
(C) Libya in 1158
(D) none of these

Answer - A
Q56. In which year was the "Bank of England" established?

(A) 1619
(B) 1694
(C) 1695
(D) 1805

Answer - B
Q57. Who among the following said, “Modern banks have three ancestors—the merchant, the moneylender and the sonar”?

(A) Crowther
(B) Marshal
(C) Robertson
(D) Hariswhite

Answer - A

60 Most Imortportant Questions of Economics 12th Class Board Exam With Answers Key

Q58. Which is the public bank?

(A) commercial bank
(B) Central Bank
(C) both (A) and (B)
(D) none of these

Answer - A
Q59. Which of the following are the primary functions of a commercial bank?

(A) lending
(B) Credit building
(C) accepting deposits
(D) all of them

Class 12 MCQs Question Paper


Answer - D

Mudra awm banking objective question answer class 12th
Q60. What are the major deposits accepted by commercial banks? ,

(A) Savings Deposit.
(B) Fixed Deposit
(C) Current Deposit
(D) all of them

Answer - D

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