Money and Banking MCQ

Check the below NCERT MCQ Questions for Money and Banking MCQ with Answers Pdf free download. MCQ Questions for  with Answers were prepared based on the latest exam pattern. We have provided Money and Banking MCQs Questions with s to help students understand the concept very well.

Money and Banking MCQs Questions with Answers

Question 1.
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

Answer: (D) All of these

Question 2.
Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these

Answer: (D) All of these

Question 3.
Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these

Answer: (D) All of these

Question 4.
Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these

Answer: (D) All of these

Question 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

Answer: (A) Reduce Cash Reserve Ratio

Question 6.
Institution that accepts deposits for lending purpose is known as __________
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public

Answer: (A) Commercial Bank

Question 7.
Which of the following is the function of a commercial bank?
(A) Accepting deposits
(B) Credit creation
(C) Agency function
(D) All of these

Answer: (D) All of these

Question 8.
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

Answer: (D) Selling government securities

Question 9.
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

Answer: (B) Overdraft

Question 10.
What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these

Answer: (D) All of these

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