Money and Banking MCQ

Check the below NCERT MCQ Questions for Money and Banking MCQ with Answers Pdf free download. MCQ Questions for  with Answers were prepared based on the latest exam pattern. We have provided Money and Banking MCQs Questions with s to help students understand the concept very well.

Money and Banking MCQs Questions with Answers

State true or false:

Question 1.
Money as a medium of exchange solves the problem of lack of double coincidence of want.

 

Answer: True

Question 2.
Legal tender money has a legal sanction behind it by the government.

 

Answer: True

Question 3.
M1 includes saving deposits of post office savings banks.

 

Answer: False

Question 4.
The money supply is a flow variable.

 

Answer: False

Question 5.
Commercial Bank plays no role in stock of money supply in the economy.

 

Answer: False

Question 6.
Credit money is money received as credit from banks.

 

Answer: False

Question 7.
Commercial banks do not create money.

 

Answer: False

Question 8.
Bank rate is a qualitative method of credit control.

 

Answer: False

Question 9.
There is an inverse relation between LRR and the size of the money multiplier.

 

Answer: True

Question 10.
Money is needed for day-to-day transactions.

 

Answer: True

Question 11.
The precautionary demand for money increases with the proportionate increase in income.

 

Answer: True

Question 12.
Reserve Bank of India provides loans to the public.

 

Answer: False

Question 13.
Along with the Reserve Bank of India, Commercial banks are also authorized to issue currency.

 

Answer: False

Question 14.
Reliable money also includes cheques.

 

Answer: False

Question 15.
Reserve Bank of India cannot become the owner of any real estate.

 

Answer: True

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