CHAPTER 4 : Banking NCERT MCQ CLASS 12TH Macro Economics Class | EDUGROWN
NCERT MCQ ON Banking:
Question1 : A commercial bank is a bank that:
- a) Gives long-term loans
- b) Creates credit
- c) Gives short-term loans
- d) All of these
Answer : All of these
Question2 : Which of the following is not concerned with banking organization?
- a) Bank rate
- b) Fiscal deficit
- c) Credit creation
- d) Cash reserve ratio
Answer : Fiscal deficit
Question3 : Non- chequeable deposits are those:
- a) Against which no cheque can be drawn at any time
- b) Against which no money can be withdrawn
- c) Which are called fixed deposit
- d) All of these
Answer : All of these
Question4 : Credit cards issued by the banks:
- a) Encourage Consumer Spending
- b) Increase Aggregate Demand In the Economy
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)
Question5 : Central bank is an apex bank of the country that:
- a) Controls the entire banking system of the country
- b) Issues currency
- c) Acts as a banker to the government
- d) All of these
Answer : All of these
Question6 : Credit control means:
- a) Contraction of credit only
- b) Extension of credit only
- c) Extension and contraction of money supply
- d) None of these
Answer : Extension and contraction of money supply
Question7 : Which of the following is not the instrument of credit control?
- a) CRR
- b) SLR
- c) Repo rate
- d) Managed floating
Answer : Managed floating
Question8 : The minimum percentage of a bank’s total deposits which is required to be kept with the RBI is called:
- a) CRR
- b) Repo rate
- c) SLR
- d) Reverse Repo Rate
Answer : CRR
Question 9: Which of the following leads to increase in AD ?
- a) Fall in imports
- b) Increase in investment expenditure
- c) Increase in government expenditure
- d) All of these
Answer : All of these
Question 10: Deficient or excess demand can be corrected through
- a) Fiscal Policy
- b) Monetary Policy
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)