Money and Banking Class 12 MCQ
Money and Banking Class 12 MCQ. We covered all the Money and Banking Class 12 MCQ in this post for free so that you can practice well for …
Money MCQ for Students. Money is a central concept in economics and finance, serving as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment. Multiple Choice Questions (MCQs) on money cover a wide range of topics related to its functions, types, history, and role in the economy.
Common Topics Covered in Money MCQs:
Functions of Money: Understanding the primary roles of money in the economy.
Types of Money: Differentiating between various forms of money such as commodity money, fiat money, and digital currencies.
Money Supply: Concepts related to the money supply, including M1, M2, and central banking.
History of Money: Evolution of money from barter systems to modern currency.
Inflation and Deflation: Impact of changes in the money supply on inflation, deflation, and purchasing power.
Banking and Financial Institutions: Role of banks, central banks, and other financial institutions in managing money.
Sample MCQs:
Functions of Money:
Which of the following is NOT a function of money?
Medium of exchange
Store of value
Unit of account
Measure of inflation
Types of Money:
Fiat money is defined as:
Money that is backed by a physical commodity
Money that has intrinsic value
Money that is issued by a government and not backed by a physical commodity
Money used exclusively in digital transactions
Money Supply:
Which of the following is included in the M1 money supply?
Savings deposits
Money market mutual funds
Traveler’s checks
Certificates of deposit
History of Money:
What was the primary form of money used in the barter system?
Gold coins
Paper currency
Direct exchange of goods and services
Bank notes
Inflation and Deflation:
Inflation is best described as:
A decrease in the overall level of prices
An increase in the overall level of prices
A decrease in the supply of money
An increase in the supply of goods and services
Banking and Financial Institutions:
The primary function of a central bank is to:
Issue and regulate the national currency
Provide loans to small businesses
Offer savings accounts to individuals
Facilitate international trade
Tips for Preparing for Money MCQs:
Understand Basic Concepts: Make sure you have a solid understanding of the fundamental functions and types of money.
Study Historical Developments: Learn about the evolution of money, including significant changes and developments over time.
Learn Economic Impacts: Understand how changes in the money supply affect inflation, deflation, and the overall economy.
Familiarize with Financial Institutions: Know the roles and functions of different financial institutions, especially central banks.
Practice with Examples: Use real-world examples to understand how money functions in everyday transactions and the broader economy.
You will get all the Money MCQ for Students on our website for free. Prepare well and score high in the Money topic of any exam for completely free.
Money and Banking Class 12 MCQ. We covered all the Money and Banking Class 12 MCQ in this post for free so that you can practice well for …
MCQ on Money and Banking. We covered all the MCQ on Money and Banking in this post for free so that you can practice well for the exam. …
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