Test: Money And Banking - 1

Question 1

Which of the following is a bank liability?

Accepted Answer

nontransaction deposits

Answer

reserves

Answer

consumer loans

Answer

securities

Question 2

Bills of exchange are sometimes known as :

Accepted Answer

Near Money

Answer

Transferable assets

Answer

Claims receivable

Answer

Business obligations

Question 3

M₂ is defined as :

Accepted Answer

M₁ + saving deposit with post office

Answer

M₁ + net time deposits

Answer

M₁ + total deposit with post office

Answer

Currency plus demand deposits in banks

Question 4

Which among the following is the static function of money?

Accepted Answer

All of the above.

Answer

Store of value

Answer

Medium of exchange

Answer

Standard of deferred payments

Question 5

The difference between narrow money and broad money is.

Accepted Answer

Time deposits with of banks

Answer

Coins and currency

Answer

Currency

Answer

Saving deposits of Banks

Question 6

Money is most liquid of all assets because _______.

Accepted Answer

It is readily convertible into others assets

Answer

It has portability

Answer

It can be easily stored

Answer

It is generally acceptable

Question 7

Which of the following measures of money supply is considered narrow concept of money supply?

Accepted Answer

M1

Answer

M2

Answer

M3

Answer

M4

Question 8

Which of the following shows the meaning of the term M₃?

Accepted Answer

M₁ + Time Deposits of Banks

Answer

M₁ + post office savings deposits

Answer

Currency + coins + demand deposits of banks

Answer

None of the above

Question 9

The number of times a unit of money exchanges hands during a unit period of time is known as:

Accepted Answer

velocity of circulation of money

Answer

speed of circulation of money

Answer

momentum of circulation of money

Answer

count of circulation of money

Question 10

Which of the following will not come under narrow money?

Accepted Answer

Time Deposit

Answer

Currency in circulation

Answer

Demand deposit

Answer

None of these

Question 11

The difference between broad money and narrow money is:

Accepted Answer

Term deposits with banks.

Answer

Post office deposits

Answer

Savings

Answer

Currency

Question 12

Which of the following is money proper ?

Accepted Answer

Currency notes and demand deposits

Answer

Bonds

Answer

Government securities

Answer

Time deposits

Question 13

The issue of one rupee currency note in India is the liability of the :

Accepted Answer

Government of India

Answer

Issue Department of the RBI

Answer

State Bank of India

Answer

Banking department of the RBI

Question 14

Broad Money refers to _________:

Accepted Answer

M3

Answer

M1

Answer

M2

Answer

M4

Question 15

M3 is :

Accepted Answer

M₁ + Time deposits of the public with bank

Answer

Currency with public + demand deposits of the public

Answer

M₁ + M₂

Answer

All of these

Question 16

The difference between broad money and narrow money is:

Accepted Answer

Term deposits with banks.

Answer

Post office deposits

Answer

Savings

Answer

Currency

Question 17

Measurement of value of all goods and services refers to which of the following functions of money?

Accepted Answer

Unit of account

Answer

Medium of Exchange

Answer

Standard of deferred payment

Answer

Store of value

Money And Banking - 1 - Free MCQ Practice Test with solutions, CA Foundation

MCQ Practice Test & Solutions: Test: Money And Banking - 1 (17 Questions)

Which of the following is a bank liability?

Bills of exchange are sometimes known as :

M₂ is defined as :

Which among the following is the static function of money?

The difference between narrow money and broad money is.

Money is most liquid of all assets because _______.

Which of the following measures of money supply is considered narrow concept of money supply?

Which of the following shows the meaning of the term M₃?

The number of times a unit of money exchanges hands during a unit period of time is known as:

Which of the following will not come under narrow money?

The difference between broad money and narrow money is:

Which of the following is money proper ?

The issue of one rupee currency note in India is the liability of the :

Broad Money refers to _________:

M₃ is :

The difference between broad money and narrow money is:

Measurement of value of all goods and services refers to which of the following functions of money?

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Money And Banking - 1 - Free MCQ Practice Test with solutions, CA Foundation

MCQ Practice Test & Solutions: Test: Money And Banking - 1 (17 Questions)

Which of the following is a bank liability?

Bills of exchange are sometimes known as :

M2 is defined as :

Which among the following is the static function of money?

The difference between narrow money and broad money is.

Money is most liquid of all assets because _______.

Which of the following measures of money supply is considered narrow concept of money supply?

Which of the following shows the meaning of the term M3?

The number of times a unit of money exchanges hands during a unit period of time is known as:

Which of the following will not come under narrow money?

The difference between broad money and narrow money is:

Which of the following is money proper ?

The issue of one rupee currency note in India is the liability of the :

Broad Money refers to _________:

M3 is :

The difference between broad money and narrow money is:

Measurement of value of all goods and services refers to which of the following functions of money?

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M₂ is defined as :

Which of the following shows the meaning of the term M₃?

M₃ is :