Class 12 Economics MCQ Chapter 5 Money and Banking Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Economics MCQ Chapter 5 Money and Banking and select need one. AHSEC Class 12 Economics Objective Type Solutions As Per AHSEC New Book Syllabus Download PDF. AHSEC Economics MCQ Class 12.
Class 12 Economics MCQ Chapter 5 Money and Banking
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Economics Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 12 Economics MCQ in English for All Chapters, You can practice these here.
Money and Banking
Chapter: 5
| PART – A: INTRODUCTORY MICROECONOMICS |
1. The word “money” is derived from the Latin word meaning.
(i) Bank.
(ii) Coin.
(iii) Wealth.
(iv) Gold.
Ans: (ii) Coin.
2. “Money is what the law says it is” defines money from the ________ perspective.
(i) Functional.
(ii) Legal.
(iii) Historical.
(iv) Behavioral.
Ans: (ii) Legal.
3. “Money is what money does” is associated with.
(i) Crowther.
(ii) Robertson.
(iii) Walker.
(iv) Seligman.
Ans: (iii) Walker.
4. Crowther’s definition of money emphasizes general acceptability and the functions of.
(i) Medium of exchange only.
(ii) Measure and store of value only.
(iii) Medium, measure, and store of value.
(iv) Deferred payments only.
Ans: (iii) Medium, measure, and store of value.
5. Full-bodied money is that for which.
(i) Face value < intrinsic value.
(ii) Face value = intrinsic value.
(iii) Face value > intrinsic value.
(iv) No intrinsic value.
Ans: (ii) Face value = intrinsic value.
6. Token (credit) money is characterized by.
(i) Face value = intrinsic value.
(ii) Face value > intrinsic value.
(iii) No face value.
(iv) Intrinsic value > face value.
Ans: (ii) Face value > intrinsic value.
7. Fiat money is.
(i) Redeemable in gold on demand.
(ii) Backed by commodity stock.
(iii) Government-issued with no intrinsic value.
(iv) Barter certificates.
Ans: (iii) Government-issued with no intrinsic value.
8. Legal tender money is that which.
(i) Is accepted by custom only.
(ii) Must be accepted for debt payments by law.
(iii) Cannot be refused socially.
iv) Is always convertible into gold.
Ans: (ii) Must be accepted for debt payments by law.
9. In India, coins are ________ and currency notes are ________.
(i) Unlimited; limited legal tender.
(ii) Limited; unlimited legal tender.
(iii) Not legal tender; legal tender.
(iv) Legal tender; not legal tender.
Ans: (ii) Limited; unlimited legal tender.
10. Bank (deposit) money primarily refers to.
(i) Time deposits only.
(ii) Demand deposits transferable by cheque.
(iii) Cash in bank vaults.
(iv) Gold reserves.
Ans: (ii) Demand deposits transferable by cheque.
11. High-powered money (monetary base) equals.
(i) Currency with public + demand deposits.
(ii) Currency with public + bank reserves + other deposits with central bank.
(iii) Currency with public only.
(iv) Bank reserves only.
Ans: (ii) Currency with public + bank reserves + other deposits with central bank.
12. Which of the following is excluded from “currency with the public”?
(i) Small coins.
(ii) Notes issued by RBI.
(iii) Cash with banks.
(iv) Rupee coins.
Ans: (iii) Cash with banks.
13. A simple measure of money supply (transactions view) equals.
(i) Currency with public + demand deposits.
(ii) Currency with public + time deposits.
(iii) Bank reserves + currency with banks.
(iv) Gold + foreign exchange.
Ans: (i) Currency with public + demand deposits.
14. Which function of money eliminates the need for double coincidence of wants?
(i) Measure of value.
(ii) Medium of exchange.
(iii) Store of value.
(iv) Standard of deferred payments.
Ans: (ii) Medium of exchange.
15. The function of money that enables price quotation and comparison is.
(i) Medium of exchange.
(ii) Measure (unit) of value.
(iii) Store of value.
(iv) Transfer of value.
Ans: (ii) Measure (unit) of value.
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