MCQ Economics Class 12 Chapter 3 Money And Banking

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Macroeconomics

MCQ’s For All Chapters – Macroeconomics Class 12th

1. Which of the following represents the assets of a bank?

Question 1 of 20

2. What is the formula for Net Worth?

Question 2 of 20

3. What does CRR stand for?

Question 3 of 20

4. What does CRR determine?

Question 4 of 20

5. If CRR is 20% and deposits are Rs 100, how much must be kept as cash reserves?

Question 5 of 20

6. What is the Statutory Liquidity Ratio known as?

Question 6 of 20

7. In the example with a 20% reserve ratio, what total deposits can Rs 100 of reserves support?

Question 7 of 20

8. Given a CRR of 20%, what is the maximum loan in the example with Rs 100 reserves?

Question 8 of 20

9. Which institution acts as the lender of last resort?

Question 9 of 20

10. Which of the following is a quantitative tool used to control money supply?

Question 10 of 20

11. What do Open Market Operations involve?

Question 11 of 20

12. What happens to money supply when the RBI buys a government bond in the open market?

Question 12 of 20

13. What is the rate at which money is lent through a repurchase agreement called?

Question 13 of 20

14. What is the rate at which money is withdrawn through a reverse repurchase agreement called?

Question 14 of 20

15. What happens to money supply when the bank rate increases?

Question 15 of 20

16. What is the principal motive for holding money?

Question 16 of 20

17. What is the number of times a unit of money changes hands during a given period called?

Question 17 of 20

18. What happens to the price of a bond when the market rate of interest rises?

Question 18 of 20

19. What is a situation called when additional money does not further lower the rate of interest below the floor rate?

Question 19 of 20

20. Which of the following is classified as broad money?

Question 20 of 20


 

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