CHAPTER 3 : Money NCERT MCQ CLASS 12TH Macro Economics Class | EDUGROWN
NCERT MCQ ON Money:
Question1 : Barter system refers to that system where in:
- a) Goods are exchanged for goods
- b) Goods are not exchanged at all
- c) Goods are exchanged for domestic currency
- d) Goods are exchanged for foreign currency
Answer : Goods are exchanged for goods
Question2 : Which of the following is related to barter system of exchange ?
- a) Double coincidence of wants
- b) Common unit of value
- c) Limited exchange
- d) Both (a) and (c)
Answer : Both (a) and (c)
Question 3: Out of the following , which is the primary function of money supply?
- a) Store of value
- b) Transfer of value
- c) Measure of value
- d) Bases of credit
Answer : Measure of value
Question4 : Which of the following is the adequate definition of money?
- a) Any goods which is commonly used as a store of value
- b) Any goods which is exchanged for gold at a fixed rate
- c) Any goods which is acceptable to a bank
- d) Any goods which is commonly accepted as a medium of exchange
Answer : Any goods which is commonly accepted as a medium of exchange
Question5 : Which of the following is the component of M1 measure of money supply?
- a) Time deposit
- b) Bill of exchange
- c) Treasury bill
- d) None of these
Answer : None of these
Question6 : Full- bodied money is that money, whose money value and commodity value are:
- a) Equal
- b) Proportionately equal
- c) Different
- d) None of these
Answer : Equal
Question7 : Bank money is that money which is:
- a) Printed by RBI
- b) Printed by the government
- c) Generated in the form of credit creation
- d) None of these
Answer : Generated in the form of credit creation
Question 8: Which of the following system governs note issuing in India
- a) Proportionate system
- b) Minimum reserve system
- c) Fixed fiduciary issue system
- d) Simple deposit system
Answer : Minimum reserve system
Question9 : In India there are four alternative measures of money supply M1, M2, M3 and M4 of these M1 =
- a) Currency with people
- b) Currency with people + demand deposits
- c) Currency with people +demand deposits + other deposits with the reserve bank
- d) None of these
Answer : Currency with people +demand deposits + other deposits with the reserve bank
Question10 : Which of the following is not the function of commercial bank?
- a) To accept deposits
- b) To offer loans
- c) To provide overdraft facility
- d) To fix CRR
Answer : To fix CRR
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