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CUET UG — free MCQ practice

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Try a CUET UG question

The first and foremost function of money is to act as:Read the answer and worked solution →Barter exchange is difficult because it requires:Read the answer and worked solution →The central bank of India, established in 1935, is the:Read the answer and worked solution →The Cash Reserve Ratio (CRR) is:Read the answer and worked solution →

Worked practice questions

The first and foremost function of money is to act as:

  1. a unit of account
  2. a standard of deferred payment
  3. a store of value
  4. a medium of exchange
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Correct answer: D. a medium of exchange

Money's principal role is as a medium of exchange, removing the need for a double coincidence of wants in barter.

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Barter exchange is difficult because it requires:

  1. a common currency
  2. a central bank
  3. high rates of interest
  4. a double coincidence of wants
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Correct answer: D. a double coincidence of wants

Barter needs each party to want exactly what the other offers — a 'double coincidence of wants' — which is rare and costly to find.

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The central bank of India, established in 1935, is the:

  1. NABARD
  2. State Bank of India
  3. Reserve Bank of India
  4. Securities and Exchange Board of India
Show answer and solution

Correct answer: C. Reserve Bank of India

India's central bank is the Reserve Bank of India, set up in 1935 SBI is a commercial bank.

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How to practise

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