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Money and Banking Test

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772 views

Money and Banking Test

Uploaded by

Ash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CLASS XII

ECONOMICS
TEST (MACROECONOMICS)
MONEY AND BANKING
Max. Marks = 30
Q1. Supply of money is a (1)
(a) Flow Variable (b) Stock Variable
(c) Real flow (d) None of these

Q2. Correct the given statement. (1)


Demand deposits include saving account and Term deposit account

Q3. Reserve Bank of India was formed in the year ____________. (1)

Q4. The money backed with mutual trust between the payer and the payee is
called (1)
(a) Fiat money (b) Fiduciary money
(c) High powered money (d) Full bodied money

Q5. Money supply includes _______________ and _______________. (1)

Q6. ___________________ is the present RBI Governor. (1)


(a) Raghuram Rajan (b) Urjit Patel
(c) Nirmala Sitharaman (d) Shaktikanta Das

Q7. Pick the odd one out (1)


(a) Repo rate (b) Open market operations
(c) Margin Requirement (d) Cash Reserve Ratio

Q7. Correct the given statement. (1)


Central Bank is the creator of credit in the economy

Q8. Identify the incorrect combination (1)


Column I Column II
A. Repo Rate I. Quantitative measure
B. RBI II. Central Bank
C. Selling of Government Bonds III. Deflation
D. Moral suasion IV. Qualitative measure
(a) A – I (b) B – II
(c) C – III (d) D – IV

Q9. Assertion (A): Government bonds are sold during inflation. (1)
Reason (R): Open Market Operations is a qualitative measure of controlling the
credit.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Q10. During inflation, the central bank_________

a. Buys government bonds.


b. reduces reverse repo rate
c. sells government bonds
d. reduces SLR

Q11. Explain the following functions of Central Bank


(a) Currency authority
(b) Banker’s Bank and supervisor (6)

Q12. (a) If primary deposits in a bank are 500 cr and the LRR stands at 25%, how
much money will be created?
(b) Find the value of Legal Reserve Ratio if an initial deposit of 200cr creates
1000 cr deposits (4)

Q13. What is Reserve Repo Rate? How does it help the economy during
inflationary situation? (4)
OR
What are Legal Reserve ratios? How do they help correct the situation of
deflation in the economy?

Q14. Taking LRR as 20% and initial deposits as 1000cr, explain the process of
credit creation. (6)

(TEAM ECOVISIONNAIRE)
ECOVISIONNAIRE KNOWLEDGE INFINITY PVT. LTD.
For Any other Study Material Kindly download our Ecovisionnaire app
from Play Store or for I Phone Users Download Class Plus App and
enter Organization Code ECOV. For any other details Contact -
9891203546

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