Refer to CBSE Class 12 Economics Money and Banking MCQs provided below available for download in Pdf. The MCQ Questions for Class 12 Economics with answers are aligned as per the latest syllabus and exam pattern suggested by CBSE, NCERT and KVS. Multiple Choice Questions for Chapter 3 Money and Banking are an important part of exams for Class 12 Economics and if practiced properly can help you to improve your understanding and get higher marks. Refer to more Chapter-wise MCQs for CBSE Class 12 Economics and also download more latest study material for all subjects
MCQ for Class 12 Economics Chapter 3 Money and Banking
Class 12 Economics students should refer to the following multiple-choice questions with answers for Chapter 3 Money and Banking in Class 12.
Chapter 3 Money and Banking MCQ Questions Class 12 Economics with Answers
Question. Barter system refers to that system where in:
a) Goods are exchanged for goods
b) Goods are not exchanged at all
c) Goods are exchanged for domestic currency
d) Goods are exchanged for foreign currency
Answer : Goods are exchanged for goods
Question. Which of the following is related to barter system of exchange ?
a) Double coincidence of wants
b) Common unit of value
c) Limited exchange
d) Both (a) and (c)
Answer : Both (a) and (c)
Question. Out of the following , which is the primary function of money supply?
a) Store of value
b) Transfer of value
c) Measure of value
d) Bases of credit
Answer : Measure of value
Question. Which of the following is the adequate definition of money?
a) Any goods which is commonly used as a store of value
b) Any goods which is exchanged for gold at a fixed rate
c) Any goods which is acceptable to a bank
d) Any goods which is commonly accepted as a medium of exchange
Answer : Any goods which is commonly accepted as a medium of exchange
Question. Which of the following is the component of M1 measure of money supply?
a) Time deposit
b) Bill of exchange
c) Treasury bill
d) None of these
Answer : None of these
Question. Full- bodied money is that money, whose money value and commodity value are:
a) Equal
b) Proportionately equal
c) Different
d) None of these
Answer : Equal
Question. Bank money is that money which is:
a) Printed by RBI
b) Printed by the government
c) Generated in the form of credit creation
d) None of these
Answer : Generated in the form of credit creation
Question. Which of the following system governs note issuing in India
a) Proportionate system
b) Minimum reserve system
c) Fixed fiduciary issue system
d) Simple deposit system
Answer : Minimum reserve system
Question. In India there are four alternative measures of money supply M1, M2, M3 and M4 of these M1 =
a) Currency with people
b) Currency with people + demand deposits
c) Currency with people +demand deposits + other deposits with the reserve bank
d) None of these
Answer : Currency with people +demand deposits + other deposits with the reserve bank
Question. Which of the following is not the function of commercial bank?
a) To accept deposits
b) To offer loans
c) To provide overdraft facility
d) To fix CRR
Answer : To fix CRR
Question. 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
Question. 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
Question. 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
Question. 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)
Question. 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
Question. 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
Question. Which of the following is not the instrument of credit control?
a) CRR
b) SLR
c) Repo rate
d) Managed floating
Answer : Managed floating
Question. 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. 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. 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)
Question. Which of the following banks are on-boarded as issuers?
A. IDBI Bank
B. RBL Bank
C. Karnataka Bank
D. Both (A) and (B)
E. Both (B) and (C)
Answer : D. Both (A) and (B)
Explanation: IDBI Bank and RBL Bank are on-boarded as issuers. It enables their customers to download any UPI enabled Apps mentioned above and link their account.
Question.Unified Payment System (UPI), a common platform which links your _________ to a virtual payment address, effectively making money transfer as easy as an SMS.
A. Bank Account Number
B. IFSC Code
C. Virtual Address
D. All of the Above
E. None of the Above.
Answer : A. Bank Account Number
Explanation: Unified Payment System (UPI), a common platform which links your bank account number to a virtual payment address, effectively making money transfer as easy as an SMS.
Question. Which of the following is a USSD based mobile banking service from NPCI that brings together all the Banks and Telecom Service Providers?.
A. WAP
B. QSAM
C. NUUP
D. Both (A) and (B)
E. Both (B) and (C)
Answer : C. NUUP
Explanation: NUUP (National Unified USSD Platform) is a USSD based mobile banking service from NPCI that brings together all the Banks and Telecom Service Providers.
Question. _________ service helps user in knowing their Aadhaar Seeding status with their bank account.
A. WAP
B. QSAM
C. NUUP
D. Both (A) and (B)
E. Both (B) and (C)
Answer : B. QSAM
Explanation: QSAM (Query Service on Aadhaar Mapper) – This service helps user in knowing their Aadhaar Seeding status with their bank account
Question. RNBCs cannot accept deposits for a period less than ______ months and more than____ months
A. 12, 84
B. 12, 60
C. 24, 60
D. 24, 84
E. None of the Above
Answer : A. 12, 84
Explanation: RNBCs cannot accept deposits for a period less than 12 months and more than 84 months.
Question. According to accepting public deposits, NBFCs can be classified into ____ broad categories.
A. Two
B. Three
C. Four
D. All of the Above
E. None of the Above
Answer : A. Two
Explanation: According to accepting public deposits, NBFCs can be classified into two broad categories, viz.,
(i) NBFCs accepting public deposit (NBFCs-D)
(ii) NBFCs not accepting/holding public deposit (NBFCs-ND).
Question. A customer can link how many account to the same mobile number?
A. Only One
B. Only Two
C. Only Three
D. More than One
E. None of the Above
Answer : D. More than One
Explanation: customer can link more than one account to the same mobile number. However each A/C no will have different MMID.
Question. An unbanked customer can initiate IMPS transaction using the services of _______.
A. PPI
B. PCI
C. PFI
D. PDI
E. None of the Above
Answer : A. PPI
Explanation: An unbanked customer can initiate IMPS transaction using the services of Pre-Paid Payments instrument issuer (PPI).
Question. Which of the following is the country‟s largest custodian and depository participant?
A. CIBIL
B. SEBI
C. NABARD
D. SHCIL
E. None of the Above
Answer : D. SHCIL
Explanation: Stock Holding Corporation of India Ltd (SHCIL), India‘s largest custodian and depository participant.
Question. The Headquarters of SHCIL is located in ___________
A. Hyderabad
B. Mumbai
C. Chennai
D. New Delhi
E. None of the Above
Answer : B. Mumbai
Explanation: The Headquarters of SHCIL is located in Mumbai, Maharashtra.
Question. Which of the following is the Slogan of UPI(Unified Payment Interface)?
A. Less Amount More Digital
B. Less Cash More Transaction
C. Less Cashflow More Digital
D. Less Circulation More Digital
E. Less Cash More Digital
Answer : E. Less Cash More Digital
Explanation: Less cash more digital is the Slogan of UPI(Unified Payment Interface)
Question. Which of the following is the parent organisation of UPI?
A. RBI
B. GOI
C. NPCI
D. All of the Above
E. None of the Above.
Answer : C. NPCI
Explanation: National Payments Corporation of India(NPCI) is the parent organisation of UPI(Unified Payment Interface)
Question. Customers using the UPI system only share _____
A. Bank Account Number
B. IFSC Code
C. Virtual Address
D. All of the Above
E. None of the Above.
Answer : C. Virtual Address
Explanation: Customers using the system do not have to disclose any sensitive information such as bank account numbers or IFSC codes during a financial transaction. It is safe as the customers only share a virtual address and provide no other sensitive information.
Question. What is the upper transaction limit of UPI system?
A. 1 lakh
B. 2 lakh
C. 5 lakh
D. 10 lakh
E. No limit
Answer : A. 1 lakh
Explanation: The upper transaction limit of UPI is Rs.1 lakh.
Question. Which of the following is the format of Virtual Address in UPI?
A. [name] @ [bank name]
B. [Phone number] @ [bank name]
C. [name] @ [bank branch name]
D. Both (A) and (B)
E. Both (B) and (C)
Answer : D. Both (A) and (B)
Explanation: Instead of account details, the receiver can share a virtual address, which can be your name, or your phone number and the sender can transfer money. For example, if your name is abc, the your virtual address could be abc@axisbank or abc@icicibank; if your phone number is 1234567890, then your virtual address could be 1234567890@axisbank or 1234567890@icicibank and so on.
Question. In UPI, we can Send money to any bank account through mobile without entering____________
A. debit/credit card details
B. net banking/wallet password
C. receiver‘s account number.
D. All of the Above
E. None of the Above.
Answer : D. All of the Above
Explanation: Send money up to Rs 1 lakh to any bank account through the mobile without entering debit/credit card details, net banking/wallet password or even knowing the receiver‘s account number.
Question. UPI will eliminate the need of entering ________ details
A. Bank Account Number
B. IFSC Code
C. CVV code
D. All of the Above
E. None of the Above.
Answer : D. All of the Above
Explanation: UPI can be used for shopping at the supermarket, or online shopping as well. It will eliminate the need of entering card details such as number, expiry date, CVV code and OTP.
Question. What are the important instruments under Indian Stamp Act, 1899?
A. bill of exchange
B. power of Attorney
C. policy of insurance
D. None of the Above
E. All of the Above
Answer : E. All of the Above
Explanation: Important Instruments are agreements, conveyances, exchange, gift, Certificate of sale, deed of partition, Power of Attorney to sell immovable property when given for consideration, deed of settlement and transfer of lease by way of assignment, bill of exchange, bill of lading, debenture, letter of credit, policy of insurance, proxy, receipt and transfer of shares.
Question. Which of the following is/are feature(s) of e-stamping?
A. Cost Savings
B. Security
C. User-friendly
D. All of the Above
E. None of the Above
Answer : D. All of the Above
Explanation:
Features:
Easy accessibility and faster processing
Security
Cost savings
User friendly
Question. Which of the following can be used to check the authenticity of the Certificate?
A. PAN Number
B. Unique Identification Number
C. A/C Number
D. All of the Above
E. None of the Above
Answer : B. Unique Identification Number
Explanation: UIN is a Unique system generated number mentioned on the e-Stamp Certificate.Anybody, having the Unique Identification Number, can check the authenticity of the Certificate
Question. What are the different modes of paying stamp duty in e-Stamping system?
A. RTGS
B. NEFT
C. Pay order
D. All of the Above
E. None of the Above
Answer : D. All of the Above
Explanation: Client can pay stamp duty amount through the following modes
Cash
Cheque
Demand Draft
Pay Order
RTGS
NEFT
Account to Account transfer.
Question. In NUUP, a customer can access banking services by just pressing ________ from his/her mobile phones.
A. *999#
B. #*99#
C. *99#
D. 1*99#
E. None of the Above
Answer : C. *99#
Explanation: In NUUP, a customer can access banking services by just pressing *99# from his/her mobile phones. This service works across all GSM mobile handsets.
Question. What is the full form of QSAM?
A. Quality Service on Aadhaar Mapper
B. Query Sending on Aadhaar Mapping
C. Query Service on Aadhaar Mapper
D. Quality Service on Aadhaar Mapping
E. Query Sending on Aadhaar Mapper
Answer : C. Query Service on Aadhaar Mapper
Explanation : Query Service on Aadhaar Mapper
Question. What are the services available under IMPS?
A. Funds Transfer and Remittances
B. Merchant Payments
C. NUUP
D. Both (A) and (B)
E. All of the Above
Answer : E All of the Above
Explanation: The services available under IMPS are Funds Transfer and Remittances Merchant Payments
NUUP
QSAM
Question. Loan and Advances of a bank come under which of the following category?
A. Assets
B. Liabilities
C. Deposits
D. All of the Above
E. None of the Above
Answer : A. Assets
Explanation: Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset.
Question. What is the full form of NUUP?
A. National Unified USSD Protocol
B. National Unitied USSD Platform
C. National Unitied USSD Protocol
D. National Unified USP Platform
E. National Unified USSD Platform
Answer : E. National Unified USSD Platform
Explanation: NUUP – National Unified USSD Platform
Question. Stamp Duty collected by the States can be broadly divided into _______ categories
A. One
B. Two
C. Three
D. All of the Above
E. None of the Above
Answer : B. Two
Explanation: Stamp Duty collected by the States can be broadly divided into two categories, viz.,Stamp Duty paid under the Indian Stamp Act, 1899 and Stamps used in payment of fees under the Court-fees Act 1870.
Question. Which of the following details can be used to verify the authenticity of an e-Stamp?
A. Certificate Number (UIN)
B. Stamp Duty Type (Description of Document)
C. 6 character alphanumeric string
D. All of the Above
E. None of the Above
Answer : D. All of the Above
Explanation: An e-Stamp can be verified online by clicking on verify e-Stamp certificate and entering the required details i.e
State
Certificate Number (UIN)
Stamp Duty Type (Description of Document)
Certificate Issue Date
6 character alphanumeric string
Question. Which of the following payment should be initiated only after consulting nearest e-Stamping center?
A. RTGS
B. NEFT
C. Pay order
D. Both (A) and (B)
E. Both (B) and (C)
Answer : D. Both (A) and (B)
Explanation: RTGS / NEFT payment should be initiated only after consulting nearest e-Stamping center.
Question. Stamps used under the Indian Stamp Act, 1899 & The Bombay Stamp Supply And Sale Rules, 1934, can be broadly divided into _______ categories.
A. One
B. Two
C. Three
D. All of the Above
E. None of the Above
Answer : B. Two
Explanation: Stamps used under the Indian Stamp Act, 1899 & The Bombay Stamp Supply And Sale Rules, 1934, can be broadly divided into two categories.
Impressed stamps Adhesive stamps.
Question. SHCIL will accept Stamp Duty Payment in ______ only
A. US$
B. Euro
C. INR
D. None of the Above
E. All of the Above
Answer : C. INR
Explanation: SHCIL will accept Stamp Duty Payment in Indian Rupees (INR) only.
Question. What is the fullform of eSBTR?
A. Electronic Secured Basic Transaction Receipt
B. Electronic Stamp Bank Treasury Receipt
C. Electronic Stamp Bank Transaction Receipt
D. Electronic Secured Bank Treasury Receipt
E. Electronic Secured Basic Treasury Receipt
Answer : D. Electronic Secured Bank Treasury Receipt
Explanation: e-SBTR, is an Electronic – Secured Bank and Treasury Receipt, issued by the Officer of the participating bank, on secured Government stationery, on payment of Stamp- duty in Virtual Treasury.
Question. Which of the following is the only Central Record Keeping Agency (CRA) appointed by the Government of India?
A. CIBIL
B. SEBI
C. NABARD
D. SHCIL
E. None of the Above
Answer : D. SHCIL
Explanation: SHCIL is appointed as Central Record-keeping Agency (CRA) and associated with stamp duty collection and not valuation.
Question. Stock Holding Corporation of India Limited is owned by?
A. SU-UTI
B. NIA
C. GIC
D. LIC
E. All of the Above
Answer : E. All of the Above
Explanation: Stock Holding Corporation of India Limited(SHCIL) is owned by the India‘s leading Banks and Financial Institutions such as, SU-UTI, IFCI Ltd., LIC, GIC, NIA, NIC, UIC, and TOICL.
Question. SHCIL was established in 1986 under the Government of India as __________
A. Private Ltd
B. Public Ltd
C. Limited Liability Partnership
D. Unlimited company
E. None of the Above
Answer : B. Public Ltd
Explanation: Stock Holding Corporation of India Limited(SHCIL) was established in 1986 under the Government of India as public limited company.
Question. Minimum value of transaction for e-SBTR should be _______
A. Rs.1000
B. Rs.2000
C. Rs.3000
D. Rs.5000
E. No limit
Answer : D. Rs.5000
Explanation: Minimum value of transaction for e-SBTR should be Rs.5,000.
Question. Maximum value of transaction for e-SBTR should be _________
A. Rs.1000
B. Rs.2000
C. Rs.3000
D. Rs.5000
E. No limit
Answer : E. No limit
Explanation: There is no maximum limit.
Question. Authorised Collection Center(ACC) is an agent appointed by SHCIL?
A. SU-UTI
B. GOI
C. GIC
D. SHCIL
E. All of the Above
Answer : D. SHCIL
Explanation: ACC means Authorised Collection Center (ACC). Its an agent appointed by SHCIL. ACC is the intermediary between the CRA and Stamp Duty payer.
Question. In which States/UT s e-Stamping is currently operational?
A. Gujarat
B. Karnataka
C. Punjab
D. All of the Above
E. None of the Above
Answer : D. All of the Above
Explanation: e-Stamping is currently operational in the States/UT s of Gujarat, Karnataka, NCT Delhi,Assam, Tamil Nadu, Rajasthan, Himachal Pradesh, Uttarakhand, UT of Dadra & Nagar Haveli, UT of Daman & Diu, Puducherry, Uttar Pradesh, Chhattisgarh, Jharkhand,Jammu & Kashmir, Punjab and Chandigarh.
Question. Which of the following is a computer based application and a secured way of paying Non-Judicial stamp duty to the Government?
A. Commercial Papers
B. E-stamp
C. Treasury bill
D. All of the Above
E. None of the Above
Answer : B. E-stamp
Explanation: e-Stamping is a computer based application and a secured way of paying Non-Judicial stamp duty to the Government.
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MCQs for Economics CBSE Class 12 Chapter 3 Money and Banking
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Chapter 3 Money and Banking MCQs Economics CBSE Class 12
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Chapter 3 Money and Banking CBSE Class 12 MCQs Economics
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CBSE MCQs Economics Class 12 Chapter 3 Money and Banking
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