Start learning →

ICSE Class 10 Money, Banking & Inflation — practice questions — page 2

Explore 144 free Money, Banking & Inflation questions in ICSE Class 10 Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Money, Banking & Inflation with Quill →

Money, Banking & Inflation questions and exercises with answers

Showing questions 31–60 of 144.

What occurs to money supply when a bank loan is repaid?Read the answer and worked solution →How do commercial banks perform maturity transformation?Read the answer and worked solution →What monopoly is held exclusively by a central bank?Read the answer and worked solution →Which institution manages monetary policy for an entire nation?Read the answer and worked solution →Which institution functions as lender of last resort to banks?Read the answer and worked solution →What does a central bank receive when loaning to government?Read the answer and worked solution →What name is given to income derived from issuing currency?Read the answer and worked solution →What is the official state power to create currency called?Read the answer and worked solution →Which system does a central bank supervise for interbank claims?Read the answer and worked solution →Which asset reserve does a central bank manage for a country?Read the answer and worked solution →What does the reserve requirement mandate commercial banks to hold?Read the answer and worked solution →What happens when the central bank lowers reserve requirements?Read the answer and worked solution →What occurs when a central bank purchases government securities?Read the answer and worked solution →What is the direct impact when a central bank sells securities?Read the answer and worked solution →What operation involves temporary lending for collateral securities?Read the answer and worked solution →Why does a central bank raise interest rates during inflation?Read the answer and worked solution →What immediate change signals an expansionary monetary policy?Read the answer and worked solution →How can a central bank direct bank loans to priority sectors?Read the answer and worked solution →What is the primary earning objective of a commercial bank?Read the answer and worked solution →Which Italian word meaning desk is the origin of the word bank?Read the answer and worked solution →Which function is considered the most significant for commercial banks?Read the answer and worked solution →How do commercial banks disburse sanctioned loans to borrowers?Read the answer and worked solution →What type of deposit is returned to a customer after a set period?Read the answer and worked solution →Which advance facility allows a borrower to withdraw beyond the balance?Read the answer and worked solution →Into what form are commercial bank loans converted upon settlement?Read the answer and worked solution →Which agency function involves collecting proceeds on behalf of clients?Read the answer and worked solution →In which agency role does a commercial bank administer customer wills?Read the answer and worked solution →Which periodic payment do commercial banks execute as an agency service?Read the answer and worked solution →Which general utility service safeguards customer valuables in a bank?Read the answer and worked solution →Which utility instrument is issued by banks to assist travel spending?Read the answer and worked solution →

Worked practice questions

What occurs to money supply when a bank loan is repaid?

  1. Base reserves surge
  2. Inflation advances
  3. Money supply expands
  4. Money is destroyed
Show answer and solution

Correct answer: D. Money is destroyed

Repaying bank loan principal destroys money in a fractional-reserve system.

Open this question →

How do commercial banks perform maturity transformation?

  1. Borrow short, lend long
  2. By swapping securities
  3. By fixing reserve rates
  4. By holding gold stocks
Show answer and solution

Correct answer: A. Borrow short, lend long

Banks transform maturities by borrowing short-term deposits and lending long term.

Open this question →

What monopoly is held exclusively by a central bank?

  1. Retail deposit taking
  2. Issuing trade credit
  3. Base money expansion
  4. Fixing corporate tax
Show answer and solution

Correct answer: C. Base money expansion

A central bank possesses an exclusive monopoly on expanding the monetary base.

Open this question →

How to practise

  1. Choose a Money, Banking & Inflation question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Money, Banking & Inflation practice for ICSE Class 10. Read explanations as you go. No signup form needed to start.

Practise Money, Banking & Inflation →

More Economics topics

Markets and Theory of SupplyTheory of Demand & ElasticityFactors of Production: Land, Labour, Capital & Enterprise