CUET UG Money and Banking — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CUET UG Money and Banking in the app →The first and foremost function of money is to act as:Barter exchange is difficult because it requires:The central bank of India, established in 1935, is the:The Cash Reserve Ratio (CRR) is:High-powered money, or reserve money, is issued by:Money serving as a 'unit of account' means that:The money multiplier is given by:If the Cash Reserve Ratio is 20%, the value of the money multiplier is:With a CRR of 20%, an initial deposit of ₹100 can expand total deposits in the system to:Other things equal, when the rate of interest rises, the demand for money:A bank's 'spread' refers to the:In the textbook example with no currency in circulation, money supply M1 equals:The reserves of a commercial bank are held:A general rise in the price level causes the purchasing power of money to:With a CRR of 20% and a fresh deposit of ₹100, the amount the bank can initially lend is:With a CRR of 10% and an initial deposit of ₹200, the maximum total deposits the banking system can create is:If the central bank raises the Cash Reserve Ratio, credit creation by commercial banks will:The Statutory Liquidity Ratio (SLR) refers to reserves that banks must keep:In the goldsmith (Lala) story, money created 'out of thin air' illustrates:On a bank's balance sheet, total assets are made up of:A Cash Reserve Ratio of 25% corresponds to a money multiplier of:When the central bank acts as 'a bank to the banking system', it is performing the function of:For money to perform its store-of-value function well, it is necessary that:To increase the money supply, the RBI is most likely to:Which of the following can act as a store of value but lacks the universal acceptability of money?