Money and Banking online Test

Result

Money and Banking online Test - 47

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Weekly Quiz Competition

Question 1
1 / -0

M₁= Currency will Public +______________________ + Other Deposits with RBI.

A
Time deposits with post offices

B
Demand deposits with commercial banks

C
Time deposits with commercial banks

D
Demand deposits with post offices

Solution

M₁ is the most liquid form of money measure which is comprised of CC + DD + OD.
Question 2
1 / -0

One of the measures of money supply is:

A
O1

B
M1

C
N1

D
P1

Solution

M1 captures the most liquid components of the money supply. It includes currency held by the public and checkable deposits in banks.
Question 3
1 / -0

The oldest central Bank in the world is _________.

A
The Reserve Bank of India

B
Sveriges Riksbank

C
The Federal Reserve system

D
The Bank Nippon

Solution

Sveriges Riksbank is the world's first or oldest central bank. It is the central bank of Sweden founded in the year 1668.
Question 4
1 / -0

Money market arranges for ____________ and capital market provides for ____________ funds.

A
long-term, short-term

B
long-term, short to medium-term

C
short-term, medium to long-term

D
medium-term, short to long-term

Solution

The financial market is a platform where investors deal in financial instruments. Money market and capital market are part of the financial market.

In the money market, extremely liquid financial instruments are traded, i.e. monetary instruments of short expiry are dealt with.

On the the other hand, the capital market is for medium to long term finance.
Question 5
1 / -0

According to Keynes, the transaction demand of money is positively associated with the level of:

A
Income

B
Investment

C
Savings

D
Consumption

Solution

According to Keynes, the transaction demand of money is positively associated with the level of Income.
Question 6
1 / -0

The main aim of monetary policy is:

A
to bring price stability in the economy.

B
employment generation in the country.

C
to increase trade surplus.

D
to generate greater tax revenue.

Solution

The main aim of monetary policy of the country is to bring price stability in the country.
Question 7
1 / -0

Barter system is:

A
Exchange of trade

B
Exchange of goods

C
Exchange of money

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 8
1 / -0

________________is the agent and adviser to the Government of India.

A
RBI

B
Commercial Banks

C
Ministry of Finance

D
None of the above

Solution

Central Bank of the country i.e., RBI functions as the advisor to the central government.
Question 9
1 / -0

Dear money policy of central bank, which is used to keep the growth steady and in-line with other economic factors, refers to:

A
Tighten the money supply in the economy

B
Ease the money supply in the economy

C
Allow commercial banks to work under less strict environment

D
Both (B) and (C)

Solution

Dear money policy is the one where central bank becomes strict in supplying the currency in the economy.
Question 10
1 / -0

The volume and direction of money supply in the economy is controlled by_______________.

A
Commercial Banks

B
Central Bank

C
Central Government

D
Both (B) and (C)

Solution

Central Bank of the country is solely responsible to change the volume and direction of trade with its various tools i.e., qualitative and quantitative.

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Re-Attempt Weekly Quiz Competition

Money and Banking online Test - 47

Result

Money and Banking online Test - 47

Score

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Rank

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SHARING IS CARING

Question 1

Time deposits with post offices

Demand deposits with commercial banks

Time deposits with commercial banks

Demand deposits with post offices

Solution

Question 2

O1

M1

N1

P1

Solution

Question 3

The Reserve Bank of India

Sveriges Riksbank

The Federal Reserve system

The Bank Nippon

Solution

Question 4

long-term, short-term

long-term, short to medium-term

short-term, medium to long-term

medium-term, short to long-term

Solution

Question 5

Income

Investment

Savings

Consumption

Solution

Question 6

to bring price stability in the economy.

employment generation in the country.

to increase trade surplus.

to generate greater tax revenue.

Solution

Question 7

Exchange of trade

Exchange of goods

Exchange of money

Exchange of foreign exchange

Solution

Question 8

RBI

Commercial Banks

Ministry of Finance

None of the above

Solution

Question 9

Tighten the money supply in the economy

Ease the money supply in the economy

Allow commercial banks to work under less strict environment

Both (B) and (C)

Solution

Question 10

Commercial Banks

Central Bank

Central Government

Both (B) and (C)

Solution

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