Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 1.
What are the necessary conditions of Barter System ?
(A) Limited Needs
(B) Limited Exchange Area
(C) Economically Backward Society
(D) All the above
Answer:
(D) All the above

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 2.
What are the advantages of Barter System ?
(A) Simple System
(B) More Mutual Co-operation
(C) No Economic Disparities
(D) All the above
Answer:
(D) All the above

Question 3.
Which one is the difficulty of Barter System ?
(A) Lack of Double Coincidence
(B) Difficulty of Division of the Goods
(C) Lack of General Acceptable Measure of Value
(D) All the above
Answer:
(D) All the above

Question 4.
Which is the correct order of money evolution ?
(A) Commodity Money, Paper Money, Metal Money
(B) Commodity Money, Metal Money, Paper Money, Credit Money
(C) Credit Money, Metal Money, Paper Money
(D) None of the above
Answer:
(B) Commodity Money, Metal Money, Paper Money, Credit Money

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 5.
“Money is what money does.” Who said it ?
(A) Hartley Withers
(B) Hawtrey
(C) Thomas
(D) Keynes
Answer:
(A) Hartley Withers

Question 6.
Which one is included in the primary function of money ?
(A) Medium of Exchange
(B) Measure of Value
(C) Both (a) and (b)
(D) Store of Value
Answer:
(C) Both (a) and (b)

Question 7.
Which one is included in the secondary function of money ?
(A) To make Deferred Payments
(B) Store of Value
(C) Transfer of Value
(D) All of these
Answer:
(D) All of these

Question 8.
“Money is a pivot around which the whole economy clusters.” Who said it ?
(A) Keynes
(B) Robertson
(C) Marshall
(D) Hawtrey
Answer:
(C) Marshall

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 9.
The function of money is:
(A) Medium of Exchange
(B) Measure of Value
(C) Store of Value
(D) All the above
Answer:
(D) All the above

Question 10.
The functions of money includes:
(A) Value determination
(B) Store of value
(C) Means of exchange
(D) All of these
Answer:
(D) All of these

Question 11.
Money is matter which is:
(A) a measure of value
(B) accepted as a means of exchange
(C) used to store wealth
(D) All of these
Answer:
(D) All of these

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 12.
By supply of money we mean :
(A) Moneydeposited in bank
(B) Money available with the public
(C) Deposits with post office savings bank
(D) All of these
Answer:
(D) All of these

Question 13.
Which of the following is not a function of money ?
(A) Medium of exchange
(B) Price stability
(C) Store of value
(D) Unit of account
Answer:
(B) Price stability

Question 14.
Which one is the Bank of the Public ?
(A) Commercial Bank
(B) Central Bank
(C) Both (a) and (b)
(D) None of the above
Answer:
(A) Commercial Bank

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 15.
The primary function of Commercial Bank is ?
(A) Accepting Deposits
(B) Advancing Loans
(C) Credit Creation
(D) All of these
Answer:
(D) All of these

Question 16.
Deposits accepted by the Commercial Banks:
(A) Current Deposits
(B) Saving Deposits
(C) Time Deposits
(D) All of these
Answer:
(D) All of these

Question 17.
What type of loan is advanced by Commercial Banks ?
(A) Cash Credit
(B) Overdraft
(C) Loan and Advance
(D) All of these
Answer:
(D) All of these

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 18.
Which function is the Secondary Function of Commercial Banks ?
(A) Agency Function
(B) General Utility Function
(C) Social Function
(D) All of these
Answer:
(D) All of these

Question 19.
Which is the Agency Function of Commercial Banks ?
(A) Advancing Loans
(B) Accepting Deposits
(C) Act as Trustee
(D) Locker Facility
Answer:
(C) Act as Trustee

Question 20.
Credit Multiplier is:
(A) \(\frac{1}{\mathrm{CRR}}\)
(B) \(cash \times \frac{1}{\text { CRR }}\)
(C) Cash x CRR
(D) None of these
Answer:
(A) \(\frac{1}{\mathrm{CRR}}\)

Question 21.
Credit money is increased when CRR:
(A) Falls
(B) Rises
(C) Both (a) and (b)
(D) None of these
Answer:
(A) Falls

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 22.
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) Automated Teller Machine

Question 23.
The main function of commercial bank is :
(A) Credit control
(B) Loaning to other banks
(C) Accept deposits from customers
(D) All the above
Answer:
(C) Accept deposits from customers

Question 24.
What is Central Bank of India ?
(A) Commercial Bank
(B) Central Bank
(C) Private Bank
(D) None of these
Answer:
(A) Commercial Bank

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 25.
Commercial banks:
(A) Issue currency notes
(B) Accepts deposits from customers
(C) Provide loans to customers
(D) Only (b) and (c)
Answer:
(D) Only (b) and (c)

Question 26.
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) All the above

Question 27.
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) Reserve Bank of India

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 28.
Which of the following is the function of Central Bank ?
(A) Monopoly of Note Issue
(B) Banker of the Government
(C) Custodian of Foreign Exchange Reserves
(D) All the above
Answer:
(D) All the above

Question 29.
Which type of currency is issuced by Central Bank ?
(A) Currency
(B) Credit Money
(C) Coins
(D) All of these
Answer:
(A) Currency

Question 30.
Which is the major objective of credit control ?
(A) To maintain Price Stability
(B) To stabilize Exchange Rate
(C) To oduction and Employment
(D) All the above
Answer:
(B) To stabilize Exchange Rate

Question 31.
Which one is true ?
(A) Bank rate is an 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) All the above

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 32.
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) Moral Suasion

Question 33.
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) Statutory Liquidity Ratio

Question 34.
Reserve Bank of India was established in :
(A) 1947
(B) 1935
(C) 1937
(D) 1945
Answer:
(B) 1935

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 35.
Monetary policy is related with :
(A) Pulie Expenditure
(B) Taxes
(C) Public Debt
(D) Open market operations
Answer:
(D) Open market operations

Question 36.
Which of the following issue paper currency in the country ?
(A) Commercial Bank
(B) Central Bank
(C) World Bank
(D) Industrial Bank
Answer:
(B) Central Bank

Question 37.
Central bank controls credit through :
(A) Bank rate
(B) Open market
(C) CRR
(D) All the above
Answer:
(A) Bank rate

Question 38.
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) Restriction on consumer credit

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 39.
The major objectives of monetary policy is/are :
(A) Increase in output and employment
(B) Stability in foreign exchange rate
(C) Price stability
(D) All of these
Answer:
(D) All of these

Question 40.
Who regulates money supply ?
(A) Govt, of India
(B) Reserve Bank of India
(C) Commercial Bank
(D) Planning Comission
Answer:
(B) Reserve Bank of India

Question 41.
With which Narsimham Committee is related to ?
(A) Tax Reforms
(B) Banking Reforms
(C) Agriculture Reforms
(D) Infrastructure Reforms
Answer:
(B) Banking Reforms

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 42.
In which year the second Narsimham Committee was constituted ?
(A) 1978
(B) 1991
(C) 1997
(D) 1998
Answer:
(D) 1998

Question 43.
Banking Ombudsman Scheme was announced in the year :
(A) 1990
(B) 1995
(C) 1997
(D) 2000
Answer:
(B) 1995

Question 44.
Which was included in the purview of Banking Ombudsman Scheme ?
(A) All Scheduled Banks
(B) Co-operative Banks
(C) Commerical Banks
(D) All of these
Answer:
(D) All of these

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 45.
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) Goiporia Committee

Question 46.
For revival and restructure of weak banks of public sector, which committee was constituted ?
(A) Verma Committee
(B) Goiporia Committee
(C) Rekhi Committee
(D) Narsimham Committee
Answer:
(A) Verma Committee

Question 47.
RBI announced the guidelines to issue liceness to new banks of private sector on :
(A) January 22, 1993
(B) March 15, 1995
(C) April 1, 1999
(D) None of these
Answer:
(A) January 22, 1993

Question 48.
Who is the custodian of Indian Banking system ?
(A) Reserve Bank of India
(B) State Bank of India
(C) Unit Trust of India
(D) LIC of India
Answer:
(A) Reserve Bank of India

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

Question 49.
Banking sector rReforms in India began in :
(A) 1969
(B) 1981
(C) 1991
(D) 2001
Answer:
(C) 1991

Question 50.
14 big scheduled commercial banks in India were nationalised in:
(A) 1949
(B) 1955
(C) 1969
(D) 2000
Answer:
(C) 1969

Question 51.
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) Only (A) and (B)

Bihar Board 12th Economics Objective Answers Chapter 6 Money and Banking

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