Test: Money And Banking - 1


10 Questions MCQ Test Economics Class 12 | Test: Money And Banking - 1


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This mock test of Test: Money And Banking - 1 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Money And Banking - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Money And Banking - 1 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Money And Banking - 1 exercise for a better result in the exam. You can find other Test: Money And Banking - 1 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

Q  Central Bank is a

Solution:
QUESTION: 2

Money is a medium of

Solution:

Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.

QUESTION: 3

The functions of money is that it is a

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QUESTION: 4

The most liquid asset among the following is?

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QUESTION: 5

One of the measures of money supply is

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QUESTION: 6

The process of money creation or credit creation IS done by

Solution:

The process of money creation, commercial banks are able to create credit, which is in far excess of the initial deposits.

QUESTION: 7

Money is anything that is

Solution:

Money to be used as a medium of exchange must be universally acceptable. All people must accept a thing as money. Or the government should give it legal sanction. And for performing the other two functions—that is, to be used as a store of value and standard of deferred payment—money should have stability of value. In other words, the value of money should not change often.

QUESTION: 8

Barter system is

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QUESTION: 9

One drawback of barter exchange is

Solution:

The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service, but also possesses that good which the former wants.

QUESTION: 10

What do you mean by credit creation by commercial banks?

Solution:

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