Money and Banking online Test

Result

Money and Banking online Test - 6

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Central Bank is an

A
Apex bank

B
Regional bank

C
Commercial bank

D
Rural bank

Solution

It is the highest banking authority in an economy. Therefore, it is also known as apex body in banking sector.
Question 2
1 / -0

Money is a medium of

A
Speculation

B
Exchange

C
Communication

D
Barter

Solution

Money is universally accepted as a medium of exchange. It can be used to buy anything worldwide.
Question 3
1 / -0

The functions of money is that it is a

A
Store of value

B
Store of stocks

C
Store of currency

D
None of the above

Solution

Person can store money for future consumption.
Question 4
1 / -0

Money overcomes the problems of barter system.

A
Can’t say

B
No

C
Sometimes

D
Yes

Solution

The most crucial limitation of barter system is double coincidence of wants. Use of money eliminates this limitation and many others.
Question 5
1 / -0

One of the measures of money supply is

A
P1

B
M1

C
N1

D
O1

Solution

M1 captures the most liquid components of the money supply. It includes currency held by the public and checkable deposits in banks.
Question 6
1 / -0

The process of money creation or credit creation is done by

A
Rural bank

B
Central bank

C
commercial banks

D
World bank

Solution

The LRR(Legal reserve ratio) allows commercial banks to keep a certain fraction of their deposits as reserve and use the rest for giving credit. The cycle of transations that happen in this proocess help create money.
Question 7
1 / -0

Money is something that is

A
Universally accepted

B
Accepted by banks

C
Locally accepted

D
Regionally accepted

Solution

Money is widely accepted as a medium of exchange. It can be used to buy a commodity.
Question 8
1 / -0

Barter system is

A
Exchange of money

B
Exchange of trade

C
Exchange of goods

D
Exchange of foreign exchange

Solution

A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.
Question 9
1 / -0

One drawback of barter exchange is

A
Lack of goods

B
Lack of trust

C
Lack of coincidence of wants

D
Lack of double coincidence of wants

Solution

The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service, but also possesses that good which the former wants.

The existence of such a double coincidence of wants is a remote probability. For, it is a very laborious and time-consuming process to find out person who want each other’s goods.
Question 10
1 / -0

What do you mean by credit creation by commercial banks?

A
It is the process of creation of foreign exchange

B
It is the process of loan creation

C
It is the process of total deposit creation

D
It is the process of total withdrawal creation

Solution

It is done through Legal reserve ratio.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Money and Banking online Test - 6

Result

Money and Banking online Test - 6

Score

-

Rank

-

SHARING IS CARING

Question 1

Apex bank

Regional bank

Commercial bank

Rural bank

Solution

Question 2

Speculation

Exchange

Communication

Barter

Solution

Question 3

Store of value

Store of stocks

Store of currency

None of the above

Solution

Question 4

Can’t say

No

Sometimes

Yes

Solution

Question 5

P1

M1

N1

O1

Solution

Question 6

Rural bank

Central bank

commercial banks

World bank

Solution

Question 7

Universally accepted

Accepted by banks

Locally accepted

Regionally accepted

Solution

Question 8

Exchange of money

Exchange of trade

Exchange of goods

Exchange of foreign exchange

Solution

Question 9

Lack of goods

Lack of trust

Lack of coincidence of wants

Lack of double coincidence of wants

Solution

Question 10

It is the process of creation of foreign exchange

It is the process of loan creation

It is the process of total deposit creation

It is the process of total withdrawal creation

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.