laboursonline – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Economics Set-3

“Money is a pivot around which the whole economy clusters.” Who said it?

1. Keynes
2. Robertson
3. Marshall
4. Hawtrey

✅ Correct Answer: 3

The function of money is:

1. Medium of Exchange
2. Measure of Value
3. Store of Value
4. All the above

✅ Correct Answer: 4

The functions of money include:

1. Value determination
2. Store of value
3. Means of exchange
4. All of these

✅ Correct Answer: 4

Money is a matter which is:

1. a measure of value
2. accepted as a means of exchange
3. used to store wealth
4. All of these

✅ Correct Answer: 4

By supply of money we mean :

1. Money deposited in the bank
2. Money available with the public
3. Deposits with post office savings bank
4. All of these

✅ Correct Answer: 4

Which of the following is not a function of money?

1. Medium of exchange
2. Price stability
3. Store of value
4. Unit of account

✅ Correct Answer: 2

The full form of ATM is:

1. Any Time Money
2. All Time Money
3. Automated Teller Machine
4. Both (a) and (b)

✅ Correct Answer: 3

Credit money is increased when CRR:

1. Falls
2. Rises
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 1

Which is the Agency Function of Commercial Banks?

1. Advancing Loans
2. Accepting Deposits
3. Act as Trustee
4. Locker Facility

✅ Correct Answer: 3

Which function is the Secondary Function of Commercial Banks?

1. Agency Function
2. General Utility Function
3. Social Function
4. All of these

✅ Correct Answer: 4

What type of loan is advanced by Commercial Banks?

1. Cash Credit
2. Overdraft
3. Loan and Advance
4. All of these

✅ Correct Answer: 4

Deposits accepted by the Commercial Banks:

1. Current Deposits
2. Saving Deposits
3. Time Deposits
4. All of these

✅ Correct Answer: 4

The primary function of Commercial Bank is?

1. Accepting Deposits
2. Advancing Loans
3. Credit Creation
4. ) All of these

✅ Correct Answer: 4

Which one is the Bank of the Public?

1. Commercial Bank
2. Central Bank
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 1

The main function of a commercial bank is:

1. Credit control
2. Loaning to other banks
3. Accept deposits from customers
4. All the above

✅ Correct Answer: 3

What is the Central Bank of India?

1. Commercial Bank
2. Central Bank
3. Private Bank
4. None of these

✅ Correct Answer: 1

Commercial banks:

1. Issue currency notes
2. Accepts deposits from customers
3. Provide loans to customers
4. Only (b) and (c)

✅ Correct Answer: 4

What is true for the Central Bank?

1. Apex Bank of the Country
2. Ownership of the Government
3. Regulates the entire banking system in the country
4. All the above

✅ Correct Answer: 4

Central Bank of India is:

1. Reserve Bank of India
2. State Bank of India
3. Central Bank of India
4. Bank of India

✅ Correct Answer: 1

Which of the following is the function of the Central Bank?

1. Monopoly of Note Issue
2. Banker of the Government
3. Custodian of Foreign Exchange Reserves
4. All the above

✅ Correct Answer: 4

Which type of currency is issued by Central Bank?

1. Currency
2. Credit Money
3. Coins
4. All of these

✅ Correct Answer: 1

Which is the major objective of credit control?

1. To maintain Price Stability
2. To stabilize Exchange Rate
3. To production and Employment
4. All the above

✅ Correct Answer: 2

Which one is true?

1. Bank rate is a rate at which Central Bank is ready to give credit to commercial banks (
2. Bank rate and interest rates are different
3. Bank rate is the discount rate of the Central Bank
4. All the above

✅ Correct Answer: 4

Which is not a quantitative method of credit control?

1. Bank Rate
2. Moral Suasion
3. Open Market Operations
4. Change in CRR

✅ Correct Answer: 2

Every bank is required to maintain a fixed percentage of its assets in the form of cash is called:

1. Cash Reserve Ratio
2. Statutory Liquidity Ratio
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 2

Reserve Bank of India was established in :

1. 1947
2. 1935
3. 1937
4. 1945

✅ Correct Answer: 2

Monetary policy is related with:

1. Public Expenditure
2. Taxes
3. Public Debt
4. Open market operations

✅ Correct Answer: 4

Which of the following issue paper currency in the country?

1. Commercial Bank
2. Central Bank
3. World Bank
4. Industrial Bank

✅ Correct Answer: 2

The central bank controls credit through:

1. Bank rate
2. Open market
3. CRR
4. All the above

✅ Correct Answer: 1

Which of the following is a qualitative method of credit control?

1. Variation in cash reserve ratio of banks
2. Restriction on consumer credit
3. Open market operations
4. Variation in bank rate

✅ Correct Answer: 2

The major objectives of monetary policy is/are:

1. Increase in output and employment
2. Stability in the foreign exchange rate
3. Price stability
4. All of these

✅ Correct Answer: 4

Who regulates the money supply?

1. Govt, of India
2. Reserve Bank of India
3. Commercial Bank
4. Planning Commission

✅ Correct Answer: 2

With which Narsimham Committee is related to?

1. Tax Reforms
2. Banking Reforms
3. Agriculture Reforms
4. Infrastructure Reforms

✅ Correct Answer: 2

In which year the second Narsimham Committee was constituted?

1. 1978
2. 1991
3. 1997
4. 1998

✅ Correct Answer: 4

Banking Ombudsman Scheme was announced in the year:

1. 1990
2. 1995
3. 1997
4. 2000

✅ Correct Answer: 2

Which was included in the purview of the Banking Ombudsman Scheme?

1. All Scheduled Banks
2. Co-operative Banks
3. Commerical Banks
4. All of these

✅ Correct Answer: 4

Which committee was constituted for suggesting consumer service improvements in banks?

1. Raja Chelliah Committee
2. Goiporia Committee
3. Verma Committee
4. Chakrabarty Committee

✅ Correct Answer: 2

For revival and restructuring of weak banks of the public sector, which committee was constituted?

1. Verma Committee
2. Goiporia Committee
3. Rekhi Committee
4. Narsimham Committee

✅ Correct Answer: 1

RBI announced the guidelines to issue licenses to new banks of the private sector on:

1. January 22, 1993
2. March 15, 1995
3. April 1, 1999
4. None of these

✅ Correct Answer: 1

Who is the custodian of the Indian Banking system?

1. Reserve Bank of India
2. State Bank of India
3. Unit Trust of India
4. LIC of India

✅ Correct Answer: 1

Banking Sector Reforms in India began in:

1. 1969
2. 1981
3. 1991
4. 2001

✅ Correct Answer: 3

14 big scheduled commercial banks in India were nationalised in:

1. 1949
2. 1955
3. 1969
4. 2000

✅ Correct Answer: 3

Which is associated with reforms in the banking sector?

1. Year 1991
2. Narsimham Committee
3. Y.V. Reddy Committee
4. Only (a) and (b)

✅ Correct Answer: 4

“Money is what money does”. Who said this:

1. Hartley Withers
2. Harte
3. Prof. Thomas
4. Keynes

✅ Correct Answer: 1

The meaning of money supply is:

1. Money deposits in the bank
2. Cash available with public
3. Savings in the post office
4. All of the above

✅ Correct Answer: 4

What is the Central Bank of India:

1. Commercial Banks
2. Central Bank
3. Private Bank
4. None of these

✅ Correct Answer: 1

Through which method we can withdraw money from the bank:

1. Drawing letter
2. Cheque
3. A.T.M.
4. All of the above

✅ Correct Answer: 4

Who is the guardian of the Indian Banking System:

1. Reserve Bank of India
2. State Bank of India
3. Unit Trust of India
4. Life Insurance Company of India.

✅ Correct Answer: 1

Narasimham Committee is related to what:

1. Improvement in Taxation
2. Improvement in Banking
3. Improvement in Agriculture
4. Improvement in Infrastructure

✅ Correct Answer: 2

Credit Multiplier is:

1. 1/CRR
2. cash×1/CRR
3. Cash x CRR
4. None of these

✅ Correct Answer: 1