CBSE  /  Class 12  /  Economics  /  Money and Banking

  • 1. 
    What is the defect of the barter system?

  • Lack of double coincidence of wants
  • Difficulty in the measurement of value
  • Difficulty in store of value
  • All of these

  • 2. 
    Which of the following is the credit money?

  • Cheque and draft
  • Promissory note
  • Exchange note
  • All of these

  • 3. 
    Which among the following is the near money?

  • Bonds
  • Insurance policy
  • Securities
  • All of these

  • 4. 
    Which of the following is the feature of money?

  • General acceptability
  • Homogeneous unit
  • Liquid asset
  • All of these

  • 5. 
    In order to encourage investment in the economy, the Central Bank may ________

  • Reduce Cash Reserve Ratio
  • Increase Cash Reserve Ratio
  • Sell Government securities in the open market
  • Increase Bank Rate

  • 6. 
    Institution that accepts deposits for lending purpose is known as __________

  • Commercial Bank
  • Central Bank
  • Government
  • Public

  • 7. 
    Which of the following is the function of a commercial bank?

  • Accepting deposits
  • Credit creation
  • Agency function
  • All of these

  • 8. 
    The central bank can increase the availability of credit by:

  • Rasing repo rate
  • Raising reverse repo rate
  • Buying government securities
  • Selling government securities

  • 9. 
    Giving permission to withdraw money by an amount more than deposited to is known as _________

  • Advance
  • Overdraft
  • Loan
  • None of these

  • 10. 
    What are the alternative measures of money supply in India?

  • M1
  • M2
  • M3 and M4
  • All of these
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