Practice Test

Q1) Which of the following approach adopted by economists to define money? Show Answer

Q2) "Money is a matter of functions of four,______ Show Answer

Q3) The main functions performed by money are called _____ Show Answer

Q4) Primary function of money Show Answer

Q5) Official currency _____ happens to be the dominant form of money Show Answer

Q6) Which of the following is /are non-currency forms of money? Show Answer

Q7) Which of the following statement is correct about 'Money'? Show Answer

Q8) Unlike other invariant physical units of measures kilograms, meter, liters etc, the value of money changes from place to place and over time Show Answer

Q9) The relatively less important functions of money are called_____ Show Answer

Q10) Secondary function of money Show Answer

Q11) Most of the contracts in Germany were made in Swiss Franc or US Dollar in _____ Show Answer

Q12) ______ is the national currency of Germany Show Answer

Q13) Money serves as store of value in the ______ Show Answer

Q14) _______ has mentioned contingent functions of money Show Answer

Q15) Prof.Kinley has mentioned ______ contingent functions of money Show Answer

Q16) Contingent functions of money? Show Answer

Q17) In present days, the use of credit money like ______ is expanding widely Show Answer

Q18) According to ______, people derive maximum satisfaction when they spend by making marginal utility equal in all goods Show Answer

Q19) _______, by its very nature, is most liquid asset Show Answer

Q20) The liquidity approach emphasizes the function of money as a______ Show Answer

Q21) Banks create money by_______ Show Answer

Q22) ______ refer to that form of deposits which are created when customers bring cash to a bank and deposit the same with it Show Answer

Q23) Cash deposits may also referred to as ______ Show Answer

Q24) The loan deposits are termed______ Show Answer

Q25) Loan giving activity of the bank is known as that of ______ Show Answer

Q26) _______ is one of the important functions of a commercial bank Show Answer

Q27) The process of 'Credit Creation' begins with banks lending money out of______ Show Answer

Q28) During the process of credit creation, which of the following issue must be considered by bank? Show Answer

Q29) A bank would keep creating additional credit so long as: Show Answer

Q30) The limitations on credit creation by banks may be considered in respect to factors such as Show Answer

Q31) Capacity to create credit by bank is a matter of _______ Show Answer

Q32) A bank be willing to create credit so long as______ Show Answer

Q33) The quantity theory of money seeks to explain the factors that Show Answer

Q34) Which of the following approach is followed in Quantity Theory of Money ? Show Answer

Q35) The transaction approach to the Quantity theory of Money is given by Show Answer

Q36) Which of the following equation is given by Fisher to explain the Quantity Theory of Money? Show Answer

Q37) To explain the equation,MV=PT of the Quantity Theory of Money, which of the following assumption was made by Fisher? Show Answer

Q38) In the words of _____ "Other things remaining unchanged, as the quantity of money in circulation increases the price level also increases in direct proportion and the value of money decreases and vise versa". Show Answer

Q39) As per Irving Fisher principle, if the quantity of money is doubled _______. Show Answer

Q40) As per Irving Fisher principle, if the quantity of money is reduced by one half _______. Show Answer

Q41) Fisher's transactions Approach can explain the causes of _____ that occurs durring war or emergency. Show Answer

Q42) Shortcoming of Fisher's Transaction Approach has been modified by the _______. Show Answer

Q43) A central bank is an apex institution of country's _______. Show Answer

Q44) A central bank is guided by profit motive. Show Answer

Q45) Central bank came into existence in the early _______ through official legislation. Show Answer

Q46) The Practice of creating a full-fledged central bank so as take charge of the exsisting financial system got an impetus by the recommandations made by the International Financial Conference held at ______. Show Answer

Q47) The Practice of creating a full-fledged central bank so as take charge of the exsisting financial system got an impetus by the recommandations made by the International Financial Conference held at Brusseles in ________. Show Answer

Q48) RBI, the central bank of our country came into existence in ______. Show Answer

Q49) Leading functions of Central Bank _____. Show Answer

Q50) Leading functions of Central Bank _____. Show Answer

Q51) Leading functions of Central Bank _____. Show Answer

Q52) _____ exercise a monopoly over issuing bank notes in the economy. Show Answer

Q53) The main advantage(s) of granting the monopoly right of note issue to the central bank is/are ______. Show Answer

Q54) The main advantage(s) of granting the monopoly right of note issue to the central bank is/are ______. Show Answer

Q55) In which of the capacities the central bank acts as the banker's bank? Show Answer

Q56) The Central Bank of the country also acts as a banker to the government which normally involves: _______. Show Answer

Q57) The RBI was established with fully paid up share capital of _____. Show Answer

Q58) The RBI was established on the basis of the recommendations of the _______. Show Answer

Q59) When the RBI was established The Government held shares of nominal value of ________. Show Answer

Q60) The RBI was nationalized on ______. Show Answer

Q61) The head office of the central bank is in ____. Show Answer

Q62) The Central Bank has ______ offices across the country. Show Answer

Q63) Primary functions of commercial bank: ____. Show Answer

Q64) The commercial banks accept deposits from public, businessmen and others in form of _____. Show Answer

Q65) Secondary functions of commercial bank:__. Show Answer

Q66) Banks as an agents to their customers by rendering various services on behalf of customers like: ______. Show Answer

Q67) Banks as an agents to their customers by rendering various services on behalf of customers like: ______. Show Answer

Q68) _______ is usually defined as the Central Bank's policy pertaining to the control of the availability, cost and use of money and credit with the help of monetary measures in order to achieve specific goals. Show Answer

Q69) Monetary policy is implemented by the _____ through the instruments of credit control. Show Answer

Q70) Which of the following measure is/are adopted for monetary policy in India: ______. Show Answer

Q71) Goals achieved by monetary policy ______. Show Answer

Q72) Quantitative measures consist of: ______. Show Answer

Q73) Quantitative measures consist of: ______. Show Answer

Q74) Bank rate is ______. Show Answer

Q75) _______ is the interest rate at which a central bank provides loans to other banks. Show Answer

Q76) When the Central Bank wishes to control credit and inflation in the economy, it _______. Show Answer

Q77) If the Central Bank wishes to boost production and investment activities in the economy, it will ______. Show Answer

Q78) ______ imply delibrate direct sales and purchases of securities and bills in the market by the Central Bank on its own initiative to control the volume of credit. Show Answer

Q79) ______ refers to the percentage of the deposits that the commercial banks are required to maintain with the central bank, being subject to variations by the central bank. Show Answer

Q80) _____ refers to the percentage of total deposits of the commercial banks that the commercial banks are required to maintain with themselves in form of cash, gold or approved government securities. Show Answer

Q81) _______ is the rate at which commercial banks borrow money from the central bank in case of any shortage of funds they face. Show Answer

Q82) _____ is a rate at which RBI borrows money from commercial banks. Show Answer

Q83) The money supply is _______. Show Answer

Q84) The monetary base is ______ and banks cash reserve Show Answer

Q85) The variables affecting the demand for money are the price level and _______. Show Answer

Q86) Fixed deposits are also called as _____. Show Answer

Q87) _______ Is the Central bank of India
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Q88) ______ is the Central Bank of USA
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Q89) _______ is the Central Bank of Europe
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Q90) _______ is the Central Bank for China.
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