{"id":7451,"date":"2023-11-24T18:47:31","date_gmt":"2023-11-24T13:17:31","guid":{"rendered":"https:\/\/edunovations.com\/mcqs\/?p=7451"},"modified":"2023-11-24T18:48:25","modified_gmt":"2023-11-24T13:18:25","slug":"ncert-class-12-economics-mcq-3","status":"publish","type":"post","link":"https:\/\/edunovations.com\/mcqs\/ncert-class-12-economics-mcq-3\/","title":{"rendered":"NCERT Class 12 Economics\u00a0MCQ :\u00a0Money and Banking"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/mcqs\/ncert-class-12-economics-mcq-3\/#NCERT_Class_12_Economics_MCQ_Money_and_Banking\" >NCERT Class 12 Economics&nbsp;MCQ :&nbsp;Money and Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/mcqs\/ncert-class-12-economics-mcq-3\/#NCERT_Class_12_Economics_Money_and_Banking_MCQ_%E2%80%93_NCERT_Class_12_MCQ\" >NCERT Class 12 Economics&nbsp;: Money and Banking MCQ &#8211; NCERT Class 12 MCQ<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/mcqs\/ncert-class-12-economics-mcq-3\/#Some_Important_Links\" >Some Important Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NCERT_Class_12_Economics_MCQ_Money_and_Banking\"><\/span>NCERT Class 12 <strong>Economics&nbsp;<\/strong>MCQ :&nbsp;Money and Banking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Delve into the intricacies of financial systems with our MCQs page dedicated to &#8216;Money and Banking.&#8217; Curated from a diverse array of previous year papers, including esteemed sectors such as UPSC IAS and more, this resource is designed to unravel the complexities of currency, monetary policy, and the pivotal role of banking institutions in shaping economic landscapes.<\/p>\n\n\n\n<p>These Multiple Choice Questions are meticulously crafted to challenge and enhance your understanding of &#8216;Money and Banking,&#8217; covering topics such as monetary instruments, central banking functions, and the interplay between fiscal policies and financial stability. Whether you&#8217;re an economics enthusiast or preparing for competitive exams, these questions offer a strategic approach to mastering the intricacies of this critical aspect of financial studies.<\/p>\n\n\n\n<p>Prepare confidently for exams with questions sourced from various sectors, ensuring a well-rounded grasp of the nuanced interactions between money supply, banking operations, and economic stability. Each MCQ serves as a key to unlocking insights into the diverse aspects of &#8216;Money and Banking,&#8217; mirroring the depth of knowledge required for success in competitive examinations.<\/p>\n\n\n\n<p>Immerse yourself in the financial world, confident in your ability to navigate through MCQs that mirror the intricate dynamics of this pivotal aspect of economic studies. Our resource, drawn from previous year papers, acts as a roadmap for exam success, offering both knowledge enrichment and strategic insights.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NCERT_Class_12_Economics_Money_and_Banking_MCQ_%E2%80%93_NCERT_Class_12_MCQ\"><\/span>NCERT Class 12 <strong><strong><strong><strong><strong>Economics&nbsp;<\/strong><\/strong><\/strong><\/strong><\/strong>: Money and Banking MCQ<strong> &#8211; NCERT Class 12 MCQ<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<style>\r\n    \/* Quiz container *\/\r\n    .quiz-container {\r\n        max-width: 800px;\r\n        margin: 0 auto;\r\n        padding: 20px;\r\n        box-sizing: border-box;\r\n        font-family: Arial, sans-serif;\r\n    }\r\n\r\n    \/* Question *\/\r\n    .question {\r\n        background-color: #f9f9f9;\r\n        padding: 20px;\r\n        border: 1px solid #ccc;\r\n        font-size: 20px;\r\n        margin-bottom: 20px;\r\n        border-radius: 5px;\r\n        box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);\r\n        position: relative;\r\n    }\r\n\r\n    \/* Question header *\/\r\n    .question h4 {\r\n        margin-bottom: 20px;\r\n    }\r\n\r\n    \/* Options list *\/\r\n    .options {\r\n        list-style-type: none;\r\n        padding: 0;\r\n    }\r\n\r\n    \/* Option item *\/\r\n    .options li {\r\n        margin: 10px;\r\n        padding: 10px;\r\n        display: flex;\r\n        align-items: center;\r\n        border-radius: 5px;\r\n        border: 2px solid #ccc;\r\n        box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);\r\n    }\r\n\r\n    \/* Option number *\/\r\n    .options li span {\r\n        margin-right: 10px;\r\n        width: 20px;\r\n        height: 20px;\r\n        border-radius: 50%;\r\n        border: 2px solid black;\r\n        display: flex;\r\n        justify-content: center;\r\n        align-items: center;\r\n        font-weight: bold;\r\n    }\r\n\r\n    \/* Option colors *\/\r\n    .options li span.option-a {\r\n        background-color: #FFD700; \/* Yellow *\/\r\n    }\r\n\r\n    .options li span.option-b {\r\n        background-color: #FF1493; \/* Pink *\/\r\n    }\r\n\r\n    .options li span.option-c {\r\n        background-color: #00BFFF; \/* Light Blue *\/\r\n    }\r\n\r\n    .options li span.option-d {\r\n        background-color: #7CFC00; \/* Green-Yellow *\/\r\n    }\r\n\r\n    .options li span.option-e {\r\n        background-color: #EE82EE; \/* Purple-Pink *\/\r\n    }\r\n\r\n    \/* Show answer button *\/\r\n    .show-answer {\r\n        background-color: #0066CC;\r\n        color: #fff;\r\n        border: none;\r\n        padding: 8px 20px;\r\n        font-size: 20px;\r\n        cursor: pointer;\r\n        border-radius: 3px;\r\n        text-align: center;\r\n        display: inline-block;\r\n        margin-bottom: 20px;\r\n    }\r\n\r\n    \/* Answer box *\/\r\n    .answer-box {\r\n        margin: 0 auto;\r\n        padding: 10px;\r\n        font-size: 20px;\r\n        color: #61970F;\r\n        box-sizing: border-box;\r\n        display: none;\r\n    }\r\n\r\n    \/* Question header *\/\r\n    .quiz-container .question-header {\r\n        color: darkblue;\r\n        font-weight: bold;\r\n        margin-right: 10px;\r\n    }\r\n\r\n    \/* Question header and text *\/\r\n    .quiz-container .question-header,\r\n    .quiz-container .question-text {\r\n        display: inline;\r\n        font-weight: bold;\r\n    }\r\n\r\n    \/* Responsive styles *\/\r\n    @media (max-width: 767px) {\r\n        .quiz-container {\r\n            padding: 10px;\r\n        }\r\n    }\r\n<\/style>\r\n<div class=\"quiz-container\">\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">What is the defect of the barter system?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96145\">Lack of double coincidence of wants<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96145\">Difficulty in the measurement of value<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96145\">Difficulty in store of value<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96145\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the credit money?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96147\">Cheque and draft<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96147\">Promissory note<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96147\">Exchange note<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96147\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which among the following is the near money?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96148\">Bonds<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96148\">Insurance policy<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96148\">Securities<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96148\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the feature of money?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96149\">General acceptability<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96149\">Homogeneous unit<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96149\">Liquid asset<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96149\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">In order to encourage investment in the economy, the Central Bank may ________\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96151\">Reduce Cash Reserve<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96151\">Increase Cash Reserve Ratio<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96151\">Sell Government securities in the open market<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96151\">Increase Bank Rate<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Institution that accepts deposits for lending purpose is known as __________<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96152\">Commercial Bank<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96152\">Central Bank<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96152\">Government<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96152\">Public<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the function of a commercial bank?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96153\">Accepting deposits<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96153\">Credit creation<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96153\">Agency function<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96153\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">The central bank can increase the availability of credit by<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96155\">Rasing repo rate<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96155\">Raising reverse repo rate<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96155\">Buying government securities<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96155\">Selling government securities<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Giving permission to withdraw money by an amount more than deposited to is known as <\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96156\">Advance<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96156\">Overdraft<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96156\">Loan<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96156\">None of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">What are the alternative measures of money supply in India?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96157\">M1<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96157\">M2<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96157\">M3 and M4<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96157\">All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Who circulates all mint and one rupee not in India?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96159\">Ministry of Finance<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96159\">RBI<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96159\">Ministry of External Affairs<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96159\">State Government<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the narrow measure of the money supply<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96160\">M2<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96160\">M3<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96160\">M1<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96160\">M4<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"c\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">MCQ Questions for Class 12 Economics Chapter 3 Money and Banking with Answers\r\nJanuary 27, 2021 by Prasanna\r\n\r\nCheck the below NCERT MCQ Questions for Class 12 Economics Chapter 3 Money and Banking with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Money and Banking Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.\r\n\r\n\r\nMoney and Banking Class 12 MCQs Questions with Answers\r\n\r\nQuestion 1.\r\nWhat is the defect of the barter system?\r\n(A) Lack of double coincidence of wants\r\n(B) Difficulty in the measurement of value\r\n(C) Difficulty in store of value\r\n(D) All of these\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 2.\r\nWhich of the following is the credit money?\r\n(A) Cheque and draft\r\n(B) Promissory note\r\n(C) Exchange note\r\n(D) All of these\r\n\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 3.\r\nWhich among the following is the near money?\r\n(A) Bonds\r\n(B) Insurance policy\r\n(C) Securities\r\n(D) All of these\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 4.\r\nWhich of the following is the feature of money?\r\n(A) General acceptability\r\n(B) Homogeneous unit\r\n(C) Liquid asset\r\n(D) All of these\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 5.\r\nIn order to encourage investment in the economy, the Central Bank may ________\r\n(A) Reduce Cash Reserve Ratio\r\n(B) Increase Cash Reserve Ratio\r\n(C) Sell Government securities in the open market\r\n(D) Increase Bank Rate\r\n\r\nAnswer\r\nAnswer: (A) Reduce Cash Reserve Ratio\r\n\r\nQuestion 6.\r\nInstitution that accepts deposits for lending purpose is known as __________\r\n(A) Commercial Bank\r\n(B) Central Bank\r\n(C) Government\r\n(D) Public\r\n\r\nAnswer\r\nAnswer: (A) Commercial Bank\r\n\r\nQuestion 7.\r\nWhich of the following is the function of a commercial bank?\r\n(A) Accepting deposits\r\n(B) Credit creation\r\n(C) Agency function\r\n(D) All of these\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 8.\r\nThe central bank can increase the availability of credit by:\r\n(A) Rasing repo rate\r\n(B) Raising reverse repo rate\r\n(C) Buying government securities\r\n(D) Selling government securities\r\n\r\n\r\n\r\nAnswer\r\nAnswer: (D) Selling government securities\r\n\r\nQuestion 9.\r\nGiving permission to withdraw money by an amount more than deposited to is known as _________\r\n(A) Advance\r\n(B) Overdraft\r\n(C) Loan\r\n(D) None of these\r\n\r\nAnswer\r\nAnswer: (B) Overdraft\r\n\r\nQuestion 10.\r\nWhat are the alternative measures of money supply in India?\r\n(A) M1\r\n(B) M2\r\n(C) M3 and M4\r\n(D) All of these\r\n\r\nAnswer\r\nAnswer: (D) All of these\r\n\r\nQuestion 11.\r\nWho circulates all mint and one rupee not in India?\r\n(A) Ministry of Finance\r\n(B) RBI\r\n(C) Ministry of External Affairs\r\n(D) State Government\r\n\r\nAnswer\r\nAnswer: (A) Ministry of Finance\r\n\r\nQuestion 12.\r\nWhich of the following is the narrow measure of the money supply?\r\n(A) M2\r\n(B) M3\r\n(C) M1\r\n(D) M4\r\n\r\nAnswer\r\nAnswer: (C) M1\r\n\r\nQuestion 13.\r\nWhen<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96161\">1947<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96161\">1948<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96161\">1951<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96161\">1957<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which is the most liquid measure of the money supply?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96162\">M4<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96162\">M3<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96162\">M2<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96162\">M1<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">High Powered Money includes<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96163\">C + DD + OD<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96163\">C + R + OD<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96163\">C + R + TD<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96163\">C + DD + TD<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Indian Monetary System is based on ________<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96165\">Paper Standard<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96165\">Metallic Standard<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96165\">Gold Standard<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96165\">Credit Money Standard<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the apex bank of India?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96166\">RBI<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96166\">SBI<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96166\">SBP<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96166\">PNB<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Who has the right of note issue<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96167\">Central Bank<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96167\">Commercial Bank<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96167\">Government<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96167\"> Co-operative Bank<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following is the function of a Central bank?\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96169\">Issue of notes<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96169\">Banker to the Government and Banks<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96169\">Supply and control of money<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96169\"> All of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">The ratio of total deposits that a commercial bank has to keep with RBI is called:\r\n<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_96170\">Statutory liquidity ratio<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_96170\">Deposit ratio<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_96170\">Cash reserve ratio<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_96170\">Legal reserve ratio<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"c\">Show Answer<\/button>\r\n    <\/div>\r\n  <\/div>\r\n<script src=\"https:\/\/code.jquery.com\/jquery-3.6.0.min.js\"><\/script>\r\n<script>\r\n$(document).ready(function() {\r\n  $('.show-answer').click(function() {\r\n    var answer = $(this).data('answer');\r\n    $(this).siblings('.answer-box').html('The correct answer is: ' + answer).slideDown();\r\n    $(this).hide();\r\n  });\r\n});\r\n<\/script>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Links\"><\/span>Some Important Links <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 1 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 2 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--3\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-3\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 3 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--4\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-4\/\">NCERT CLASS 4 MCQ<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--5\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-5\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 5 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--6\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-6\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 6 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--7\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-7\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 7 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--8\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-8\/\">NCERT CLASS 8 MCQ<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--9\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-9\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 9 MCQ<span style=\"color: rgb(115, 135, 156); font-family: &quot;Helvetica Neue&quot;, Roboto, Arial, &quot;Droid Sans&quot;, sans-serif; font-size: 13px; text-align: start; white-space: normal;\">Accountancy&nbsp;<\/span><\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--10\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-10\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 10 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--11\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-11\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT CLASS 11 MCQ<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--12\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/class-12\/\">NCERT CLASS 12 MCQ<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/subject-wise\/indian-history\/\" target=\"_blank\" rel=\"noreferrer noopener\">Indian History MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/subject-wise\/indian-polity\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Indian Polity MCQ<\/strong>s<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"Free-GK-MCQ-App\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"Free GK MCQ App noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App.jpg\" alt=\"Free GK MCQ App\" class=\"wp-image-743\" title=\"Free GK MCQ App\" srcset=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App.jpg 900w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App-300x50.jpg 300w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App-768x128.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><figcaption class=\"wp-element-caption\">Free GK MCQ App<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"Free-Daily-Current-Affairs-MCQ-App\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"Free Daily Current Affairs MCQ App noopener\"><img decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2.jpg\" alt=\"Free Daily Current Affairs MCQ App\" class=\"wp-image-744\" title=\"Free Daily Current Affairs MCQ App\" srcset=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2.jpg 900w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2-300x50.jpg 300w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2-768x128.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><figcaption class=\"wp-element-caption\">Free Daily Current Affairs MCQ App<\/figcaption><\/figure>\n\n\n\n<script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6643489308705072\" crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\" style=\"display:block\" data-ad-format=\"autorelaxed\" data-ad-client=\"ca-pub-6643489308705072\" data-ad-slot=\"2759669284\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>NCERT Class 12 Economics&nbsp;MCQ :&nbsp;Money and Banking Delve into the intricacies of financial systems with our MCQs page dedicated to &#8216;Money and Banking.&#8217; Curated from a diverse array of previous year papers, including esteemed sectors such as UPSC IAS and more, this resource is designed to unravel the complexities of currency, monetary policy, and the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[71],"tags":[5545,5444,5544,91,740,5546,589,590],"class_list":["post-7451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-class-12","tag-central-banking-2","tag-exam-preparation-concepts","tag-financial-studies","tag-mcqs","tag-monetary-policy","tag-money-and-banking","tag-previous-year-papers","tag-upsc-ias","entry","has-media"],"_links":{"self":[{"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/posts\/7451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/comments?post=7451"}],"version-history":[{"count":2,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/posts\/7451\/revisions"}],"predecessor-version":[{"id":7463,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/posts\/7451\/revisions\/7463"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/media\/7457"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/media?parent=7451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/categories?post=7451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/mcqs\/wp-json\/wp\/v2\/tags?post=7451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}