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

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1. Who circulates all mint and one rupee not in India?
(A) Ministry of Finance
(B) RBI
(C) Ministry of External Affairs
(D) State Government

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2. Who has the right of note issue?
(A) Central Bank
(B) Commercial Bank
(C) Government
(D) Co-operative Bank

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3. Which of the following is the narrow measure of the money supply?
(A) M2
(B) M3
(C) M1
(D) M4

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4. Which is the correct order of money evolution?
(a) Commodity Money, Paper Money, Metal Money
(b) Commodity Money, Metal Money, Paper Money, Credit Money
(c) Credit Money, Metal Money, Paper Money
(d) None of the above

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5. When was the minimum reserve system started in India?
(A) 1947
(B) 1948
(C) 1951
(D) 1957

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6. What is the defect of the barter system?
(A) Lack of double coincidence of wants
(B) Difficulty in the measurement of value
(C) Difficulty in store of value
(D) All of these

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7. Which is the most liquid measure of the money supply?
(A) M4
(B) M3
(C) M2
(D) M1

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8. The function of money is:
(a) Medium of Exchange
(b) Measure of Value
(c) Store of Value
(d) All the above

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9. Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these

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10. Which one is included in the secondary function of money?
(a) To make Deferred Payments
(b) Store of Value
(c) Transfer of Value
(d) All of these

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11. High Powered Money includes:
(A) C + DD + OD
(B) C + R + OD
(C) C + R + TD
(D) C + DD + TD

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12. Which one is included in the primary function of money?
(a) Medium of Exchange
(b) Measure of Value
(c) Both (a) and (b)
(d) Store of Value

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13. Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these

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14. “Money is what money does.” Who said it?
(a) Hartley Withers
(b) Hawtrey
(c) Thomas
(d) Keynes

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15. Indian Monetary System is based on _______.
(A) Paper Standard
(B) Metallic Standard
(C) Gold Standard
(D) Credit Money Standard

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