CBSE Class 12 Economics Money And Banking Worksheet Set C

Question. Credit money is increased when CRR:
(a) Falls
(b) Rises
(c) Both (a) and (b)
(d) None of these
Answer: (a)

Question. The full form of ATM is:
(a) Any Time Money
(b) All Time Money
(c) Automated Teller Machine
(d) Both (a) and (b)
Answer: (c)

Question. The main function of a commercial bank is:
(a) Credit control
(b) Loaning to other banks
(c) Accept deposits from customers
(d) All the above
Answer: (c)

Question. What is the Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Answer: (a)

Question. Commercial banks:
(a) Issue currency notes
(b) Accepts deposits from customers
(c) Provide loans to customers
(d) Only (b) and (c)
Answer: (d)

Question. What is true for the Central Bank?
(a) Apex Bank of the Country
(b) Ownership of the Government
(c) Regulates the entire banking system in the country
(d) All the above
Answer: (d)

Question. Central Bank of India is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India
Answer: (a)

Question. Which of the following is the function of the Central Bank?
(a) Monopoly of Note Issue
(b) Banker of the Government
(c) Custodian of Foreign Exchange Reserves
(d) All the above
Answer: (d)

Question. Which type of currency is issued by Central Bank?
(a) Currency
(b) Credit Money
(c) Coins
(d) All of these
Answer: (a)

Question. Which is the major objective of credit control?
(a) To maintain Price Stability
(b) To stabilize Exchange Rate
(c) To production and Employment
(d) All the above
Answer: (b)

Question. Which one is true?
(a) Bank rate is a rate at which Central Bank is ready to give credit to commercial banks
(b) Bank rate and interest rates are different
(c) Bank rate is the discount rate of the Central Bank
(d) All the above
Answer: (d)

Question. Which is not a quantitative method of credit control?
(a) Bank Rate
(b) Moral Suasion
(c) Open Market Operations
(d) Change in CRR
Answer: (b)

Question. Every bank is required to maintain a fixed percentage of its assets in the form of cash is called:
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Both (a) and (b)
(d) None of the above
Answer: (b)

Question. Reserve Bank of India was established in :
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer: (b)

Question. Monetary policy is related with:
(a) Public Expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations
Answer: (d)

Question. Which of the following issue paper currency in the country?
(a) Commercial Bank
(b) Central Bank
(c) World Bank
(d) Industrial Bank
Answer: (b)

Question. The central bank controls credit through:
(a) Bank rate
(b) Open market
(c) CRR
(d) All the above
Answer: (a)

Question. Which of the following is a qualitative method of credit control?
(a) Variation in cash reserve ratio of banks
(b) Restriction on consumer credit
(c) Open market operations
(d) Variation in bank rate
Answer: (b)

Question. The major objectives of monetary policy is/are:
(a) Increase in output and employment
(b) Stability in the foreign exchange rate
(c) Price stability
(d) All of these
Answer: (d)

Question. Who regulates the money supply?
(a) Govt, of India
(b) Reserve Bank of India
(c) Commercial Bank
(d) Planning Commission
Answer: (b)

Question. With which Narsimham Committee is related to?
(a) Tax Reforms
(b) Banking Reforms
(c) Agriculture Reforms
(d) Infrastructure Reforms
Answer: (b)

Question. In which year the second Narsimham Committee was constituted?
(a) 1978
(b) 1991
(c) 1997
(d) 1998
Answer: (d)

Question. Banking Ombudsman Scheme was announced in the year:
(a) 1990
(b) 1995
(c) 1997
(d) 2000
Answer: (b)

Question. Which was included in the purview of the Banking Ombudsman Scheme?
(a) All Scheduled Banks
(b) Co-operative Banks
(c) Commerical Banks
(d) All of these
Answer: (d)

Question. Which committee was constituted for suggesting consumer service improvements in banks?
(a) Raja Chelliah Committee
(b) Goiporia Committee
(c) Verma Committee
(d) Chakrabarty Committee
Answer: (b)

Question. For revival and restructuring of weak banks of the public sector, which committee was constituted?
(a) Verma Committee
(b) Goiporia Committee
(c) Rekhi Committee
(d) Narsimham Committee
Answer: (a)

Question. RBI announced the guidelines to issue licenses to new banks of the private sector on:
(a) January 22, 1993
(b) March 15, 1995
(c) April 1, 1999
(d) None of these
Answer: (a)

Question. Who is the custodian of the Indian Banking system?
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) LIC of India
Answer: (a)

Question. Banking Sector Reforms in India began in:
(a) 1969
(b) 1981
(c) 1991
(d) 2001
Answer: (c)

Question. 14 big scheduled commercial banks in India were nationalised in:
(a) 1949
(b) 1955
(c) 1969
(d) 2000
Answer: (c)

Question. Which is associated with reforms in the banking sector?
(a) Year 1991
(b) Narsimham Committee
(c) Y.V. Reddy Committee
(d) Only (a) and (b)
Answer: (d)

Question. “Money is what money does”. Who said this:
(a) Hartley Withers
(b) Harte
(c) Prof. Thomas
(d) Keynes
Answer: (a)

Question. The function of money is:
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) All of the above
Answer: (a)

Question. The meaning of money supply is:
(a) Money deposits in the bank
(b) Cash available with public
(c) Savings in the post office
(d) All of the above
Answer: (d)

Question. What is the Central Bank of India:
(a) Commercial Banks
(b) Central Bank
(c) Private Bank
(d) None of these
Answer: (a)

Question. Through which method we can withdraw money from the bank:
(a) Drawing letter
(b) Cheque
(c) A.T.M.
(d) All of the above
Answer: (d)

Question. Who is the guardian of the Indian Banking System:
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) Life Insurance Company of India.
Answer: (a)

Question. Narasimham Committee is related to what:
(a) Improvement in Taxation
(b) Improvement in Banking
(c) Improvement in Agriculture
(d) Improvement in Infrastructure
Answer: (b)

Fill in the blanks:

Question. The exchange of goods for goods is called _____ exchange.
Answer: barter

Question. ______ is a narrow concept of money.
Answer: M1

Question. ________ is a broad concept of money.
Answer: M3

Question. _______ are the deposits which are payable by the banks to the customers after a fixed period.
Answer: Time deposits

Question. Currency money is also known as ______ money.
Answer: fiat

Question. Supply of money is a _______ concept.
Answer: stock

Question. The money multiplier is the rate of change in _____ due to initial deposits.
Answer: money supply

Question. Currency with public means _____ and ______ with the public outside the bank.
Answer: coins, currency notes

Question. _______ is the Central Bank of India.
Answer: RBI

Question. Commercial banks are an important source of _________ in the economy.
Answer: money supply

Question. Banks serve as a channel between _______ and investors.
Answer: depositors

Question. Two essential functions of a bank are accepting deposit and ________
Answer: advancing loan

Question. The Central Bank is the apex institution of the _______ system.
Answer: Monetary

Question. Bank rate is the _______ instrument of Central Bank.
Answer: Quantitative

Question. Central Bank of India is………………..
Answer: Reserve Bank of India

Question. Bank rate is also known as………………..
Answer: Redemption

Question. The bank generates……………….. deposits in credit creation.
Answer: Derivative

Question. When CRR decreases, credit creation………………..
Answer: Increases

Question. The measure of deferred payment is ……………….. function of money.
Answer: Secondary

Question. Medium of exchange is ……………….. function of money.
Answer: Primary

Question. The static and dynamic function of money is divided by………………..
Answer: Paul Einzig