Money and Banking - Online Test

Q1. Central Bank is an
Answer : Option C
Explaination / Solution:

It is the highest banking authority in an economy. Therefore, it is also known as apex body in banking sector.

Q2. Money is a medium of
Answer : Option D
Explaination / Solution:

Money is universally accepted as a medium of exchange. It can be used to buy anything worldwide.

Q3. The functions of money is that it is a
Answer : Option D
Explaination / Solution:
No Explaination.


Q4. Money over comes the problems of barter system. It is
Answer : Option A
Explaination / Solution:
No Explaination.


Q5. One of the measures of money supply is
Answer : Option D
Explaination / Solution:
No Explaination.


Q6. The process of money creation or credit creation IS done by
Answer : Option B
Explaination / Solution:
No Explaination.


Q7. Money is something that is
Answer : Option D
Explaination / Solution:

Money is widely accepted as a medium of exchange. It can be used to buy a commodity.

Q8. Barter system is
Answer : Option A
Explaination / Solution:
No Explaination.


Q9. One drawback of barter exchange is
Answer : Option C
Explaination / Solution:
No Explaination.


Q10. What do you mean by credit creation by commercial banks?
Answer : Option A
Explaination / Solution:
No Explaination.