Economics MCQ Class 12 Chapter 3 | Money and Banking | Economics Quiz for Class 12 and Other Competitive Exams

Economics MCQ Class 12 Chapter 3: Check the below NCERT MCQ Questions for Economics MCQ Class 12 Chapter 3 with Answers Pdf free download. Economics MCQ Class 12 Chapter 3 Questions for Economics with Answers were prepared based on the latest exam pattern. We have provided Economics MCQ Class 12 Chapter 3 with Answers to help students understand the concept very well.

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Economics MCQ Class 12 Chapter 3


1. Which of the following is the function of a Central bank?
(A) Issue of notes
(B) Banker to the Government and Banks
(C) Supply and control of money
(D) All of these

View Answer

(D) All of these


2. Demand deposits include
(A) Saving account deposits and fixed deposits
(B) Saving account deposits and current account deposits
(C) Current account deposits and fixed deposits
(D) All type of deposits

View Answer

(B) Saving account deposits and current account deposits


3. Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these

View Answer

(D) All of these


4. The ratio of total deposits that a commercial bank has to keep with RBI is called:
(A) Statutory liquidity ratio
(B) Deposit ratio
(C) Cash reserve ratio
(D) Legal reserve ratio

View Answer

(C) Cash reserve ratio


5. 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

View Answer

(A) Reduce Cash Reserve Ratio


6. What are the advantages of the Barter System?
(a) Simple System
(b) More Mutual Co-operation
(c) No Economic Disparities
(d) All the above

View Answer

(d) All the above


7. Institution that accepts deposits for lending purpose is known as ______.
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public

View Answer

(A) Commercial Bank


8. What are the necessary conditions of the Barter System?
(a) Limited Needs
(b) Limited Exchange Area
(c) Economically Backward Society
(d) All the above

View Answer

(d) All the above


9. Which of the following is the function of a commercial bank?
(A) Accepting deposits
(B) Credit creation
(C) Agency function
(D) All of these

View Answer

(D) All of these


10. Money is a matter which is:
(a) a measure of value
(b) accepted as a means of exchange
(c) used to store wealth
(d) All of these

View Answer

(d) All of these


11. 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

View Answer

(D) Selling government securities


12. The functions of money include:
(a) Value determination
(b) Store of value
(c) Means of exchange
(d) All of these

View Answer

(d) All of these


13. 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

View Answer

(B) Overdraft


14. Which one is the difficulty of the Barter System?
(a) Lack of Double Coincidence
(b) Difficulty of Division of the Goods
(c) Lack of General Acceptable Measure of Value
(d) All the above

View Answer

(d) All the above


15. What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these

View Answer

(D) All of these


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By Team Learning Mantras

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