Monetary Economics Quiz 5 (11 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. If the reserve ratio is 5 percent, then $ 2, 500 of additional reserves can create up to

Correct Answer: B) $ 50, 000 of new money.

2. The ratio of money held by public in currency to that they hold in bank deposits

Correct Answer: A) CDR.

3. What is known as the most profitable asset of a commercial bank?

Correct Answer: B) Loans and advances to its customers.

4. The term 'E Pluribus Unum' represents what?

Correct Answer: C) The original thirteen colonies.

5. The central banking functions in India are performed by the

Correct Answer: B) Reserve Bank of India.

6. Value that is based on an opinion of a person, society, etc. is what type of value?

Correct Answer: C) Subjective value.

7. Monetary policy resulting in higher interest rates and restricted access to credit; associated with a contraction of the money supply.

Correct Answer: B) Tight money policy.

8. Trading for things with other goods is called

Correct Answer: C) Bartering.

9. Money as a medium of exchange is an

Correct Answer: A) Primary function.

10. If the central bank wants to control credit, it should

Correct Answer: B) Raise the bank rate.

11. What is the official term for the HEAD side of the coin?

Correct Answer: A) Obverse.