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CUET UG Money and Banking — practice questions

Explore 5 free Money and Banking questions in CUET UG Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Money and Banking questions and exercises with answers

Showing questions 1–5 of 5.

Pull the rope to the right measureRead the answer and worked solution →Stack the functions of moneyRead the answer and worked solution →Sort the bank balance sheetRead the answer and worked solution →Match each money termRead the answer and worked solution →True or false: money and bankingRead the answer and worked solution →

Worked practice questions

Pull the rope to the right measure

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Categories
  1. M1 money supply
  2. M2 money supply
Questions
  1. Answer
    M1 money supply
    Question
    Coins and currency in circulation.
  2. Answer
    M1 money supply
    Question
    Checkable, or demand, deposits.
  3. Answer
    M1 money supply
    Question
    Traveler's checks.
  4. Answer
    M2 money supply
    Question
    Savings deposits in banks.
  5. Answer
    M2 money supply
    Question
    The broader of the two definitions.
  6. Answer
    M1 money supply
    Question
    The narrower of the two definitions.
  7. Answer
    M2 money supply
    Question
    Accounts you cannot write a check on.
  8. Answer
    M2 money supply
    Question
    Everything in M1, plus more deposits.
Instructions
Tap the side of the rope that each item belongs to.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_

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Stack the functions of money

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Questions
  1. Answer
    Medium of exchange
    Question
    Acts between the buyer and the seller.
    Choices
    1. Medium of exchange
    2. Store of value
  2. Answer
    Unit of account
    Question
    The ruler by which we measure values.
    Choices
    1. Unit of account
    2. Medium of exchange
  3. Answer
    Store of value
    Question
    Money must hold worth for later.
    Choices
    1. Store of value
    2. Unit of account
  4. Answer
    Medium of exchange
    Question
    The first function named.
    Choices
    1. Medium of exchange
    2. Unit of account
  5. Answer
    Store of value
    Question
    The second function named.
    Choices
    1. Store of value
    2. Medium of exchange
  6. Answer
    Unit of account
    Question
    The third function named.
    Choices
    1. Unit of account
    2. Store of value
  7. Answer
    Unit of account
    Question
    Lets you compare two prices.
    Choices
    1. Unit of account
    2. Medium of exchange
  8. Answer
    Medium of exchange
    Question
    Lets you buy without bartering.
    Choices
    1. Medium of exchange
    2. Store of value
Instructions
Tap the right answer to add a block. Too many mistakes and the tower falls.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_

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Sort the bank balance sheet

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Items
  1. Category
    Assets
    Item
    Bank reserves
  2. Category
    Assets
    Item
    Loans made
  3. Category
    Assets
    Item
    Bonds held
  4. Category
    Liabilities
    Item
    Money owed out
  5. Category
    Liabilities
    Item
    Deposits owed
  6. Category
    Liabilities
    Item
    What bank owes
Categories
  1. Assets
  2. Liabilities
Instructions
Send each item down the chute where it belongs on the balance sheet.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_

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More Economics topics

Unit 1A: Basic Economic Concepts and Production SystemsIntroduction to MicroeconomicsUnit 2A1: Measuring Economic Output and Real GDPUnit 2A: Demand, Supply and Market EquilibriumUnit 2B: Economic Indicators: Inflation & UnemploymentUnit 4: Financial Sector: Money & Banking SystemUnit 4: Imperfect Competition & Market StructuresUnit 5: Factor Markets & Resource Allocation