New ! Economics MCQ Practise Tests



Banking Model Questions

12th Standard

    Reg.No. :
  •  
  •  
  •  
  •  
  •  
  •  

Economics

Time : 01:00:00 Hrs
Total Marks : 50
    10 x 1 = 10
  1. A Bank is a

    (a)

    Financial institution

    (b)

    Corporate

    (c)

    An Industry

    (d)

    Service institutions

  2. A Commercial Bank is an institutions that provides services

    (a)

    Accepting deposits

    (b)

    Providing loans

    (c)

    Both a and b

    (d)

    None of the above

  3. Central bank is_____ authority of any country.

    (a)

    Monetary

    (b)

    Fiscal

    (c)

    Wage

    (d)

    National Income

  4. Repo Rate means.

    (a)

    Rate at which the Commercial Banks are willing to lend to RBI

    (b)

    Rate at which the RBI is willing to lend to commercial banks

    (c)

    Exchange rate of the foreign bank

    (d)

    Growth rate of the economy

  5. Monetary policy his formulated by.

    (a)

    Co-operative banks

    (b)

    Commercial banks

    (c)

    Central Bank

    (d)

    Foreign banks

  6. Credit creation means the________

    (a)

    Multiplication of loans and advances

    (b)

    Money supply

    (c)

    Letter of credit

    (d)

    All the above

  7. "Commercial banks are the institutions that make short term loans to business and in the process create money" was said by_______

    (a)

    Culbertson

    (b)

    Adam smith

    (c)

    Ricardo

    (d)

    J.M. Keynes

  8. ________is a Financial Institution

    (a)

    Bank

    (b)

    Service Institution

    (c)

    Industry

    (d)

    School

  9. _______means rate at which the RBI is willing to lend to commercial banks

    (a)

    Interest rate

    (b)

    Growth rate

    (c)

    Repo rate

    (d)

    Bank rate

  10. The fundamentals of the art of banking have been developed by _____ as the first bank of issues

    (a)

    The Bank of Baroda

    (b)

    The Bank of India

    (c)

    Federal Bank of America

    (d)

    The Bank of England

  11. 5 x 2 = 10
  12. Define Commercial banks.

  13. What is credit creation?

  14. Mention the functions of agriculture credit department.

  15. Name the two ways of deposits that the modern banks create?

  16. What are the two credit measures of RBI?

  17. 5 x 3 = 15
  18. What are the functions of NABARD?

  19. Specify the functions of IFCI.

  20. Mention the objectives of demonetizations.

  21. Explain about money supply.

  22. 3 x 5 = 15
  23. Elucidate the functions of Commercial Banks

  24. Distinguish between RTGS and NEFT.

  25. Write the History, Administration and Brief Functions of RBI.

*****************************************

Reviews & Comments about 12th Standard Economics Chapter 6 Banking Model Question Paper

Write your Comment