MCQ on Money Class 12 covers certain important topics, which are covered under syllabus for ISCE Class 12 and are coming in Term II examination for the academic year 2022-23. Money Class 12 MCQ Test contains 34 questions. MCQ on Economics Class 12 ISC have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
MCQ on Money Class 12
Meaning of money
1. “Money is what money does,” this definition was given by;
(a) Emmanuel Kant
(b) Samsung
(c) Walker
(d) Herman Daly.
Answer
Answer: (c) Walker
2. _______ defines money as “anything which is widely accepted in payments for goods or in the discharge of other kinds of business obligations.”
(a) D.H. Cole
(b) Robertson
(c) Kant
(d) Walker
Answer
Answer: (b) Robertson
3. “Money is anything which is habitually and widely used as a means of payment and is generally accepted in the settlement of debts.” This definition was given by;
(a) GDH Cole
(b) Robertson
(c) Peterson
(d) Walker
Answer
Answer: (a) GDH Cole
4. According to _______ “money is anything which is commonly used and generally accepted as a medium of exchange or as a standard of value.”
(a) GDH Cole
(b) Robertson
(c) Peterson
(d) Kent
Answer
Answer: (d) Kent
5. _______ has defined money as “any thing that possesses general acceptability.”
(a) Robertson
(b) Kent
(c) Seligman
(d) Daily
Answer
Answer: (c) Seligman
6. _______ has given the most suitable definition of money;
(a) Kent
(b) Crowther
(c) Peterson
(d) Daily
Answer
Answer: (b) Crowther
7. According to Crowther, money is;
(a) anything which is commonly used and generally accepted as a medium of exchange or as a standard of value.”
(b) Anything which is generally accepted as a means of exchange and at the same time acts as a measure and store of value.
(c) anything which is habitually and widely used as a means of payment and is generally accepted in the settlement of debts.”
(d) anything which is widely accepted in payments for goods or in the discharge of other kinds of business obligations.”
Answer
Answer: (b) Anything which is generally accepted as a means of exchange and at the same time acts as a measure and store of value.
8. Which of the above are the functions of money;
(a) Medium of exchange
(b) Store of value
(c) Measure of value
(d) All of the above
Answer
Answer: (d) All of the above
9. The basic character of money is acceptability. ( True/False)
Answer
Answer: True
10. Money possesses the _______.
(a) Measuring power
(b) Medium powers
(c) Purchasing power
(d) None of the above
Answer
Answer: (c) Purchasing power
MCQ on Money Class 12
Functions of money
11. The functions of money are classified as;
(a) Primary functions
(b) Secondary functions
(c) Contingent functions
(d) All of the above
Answer
Answer: (d) All of the above
12. Which of the following are the primary functions of money?
(a) Medium of exchange
(b) Measure of value
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
13. Money acts as a ;
(a) Measure of value
(b) Unit of account
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
14. Which of the following is a secondary function of money?
(a) Standard of deferred payment
(b) Store of value
(c) Unit of account
(d) Both (a)&(b)
Answer
Answer: (d) Both (a)&(b)
15. Which of the following are contingent functions of money?
(a) Maximization of utility
(b) Employment of factor inputs
(c) Distribution of national income
(d) All of the above
Answer
Answer: (d) All of the above
MCQ on Money Class 12
Supply of money
16. Supply of money refers to the stock of money held by the public at a point of time. (True/False)
Answer
Answer: True
17. Public consists of;
(a) Economic units
(b) Business firms
(c) Institutions operating
(d) All of the above
Answer
Answer: (d) All of the above
18. Money supply refers to money in motion. (True/False)
Answer
Answer: True
19. Money supply is a ______ concept.
(a) Flow
(b) Stock
(c) Constant
(d) None of the above
Answer
Answer: (b) Stock
20. ________ refers to how easily an asset can be converted into cash
(a) Money supply
(b) Flow of money
(c) Liquidity
(d) Solidity
Answer
Answer: (c) Liquidity
21. In India, RBI uses_____ measures of the money supply.
(a) 2
(b) 4
(c) 1
(d) 3
Answer
Answer: (b) 4
22. M1 consists of
(a) Currency notes and coins with the public
(b) Demand deposits of the people with commercial banks
(c) Other deposits with RBI
(d) All of the above
Answer
Answer: (d) All of the above
23. M2 consists of
(a) M1
(b) The post office’s saving deposit
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
24. M3 consists of
(a) M2
(b) Time deposits with a commercial banks
(c) M1
(d) Both (a)&(b)
Answer
Answer: (d) Both (a)&(b)
25. M4 consists of
(a) M3
(b) Total deposit with the post office
(c) National saving certificates are excluded
(d) All of the above
Answer
Answer: (d) All of the above
26. Which of the following measure money is narrow sense;
(a) M1 and M2
(b) M2 and M3
(c) M3 and M1
(d) M1 and M4
Answer
Answer: (a) M1 and M2
27. M0 measure is generally known as;
(a) Liquid money
(b) High powered money
(c) Low Powered money
(d) None of the above
Answer
Answer: (b) High powered money
28. M0 consists of
(a) Currency in circulation
(b) Currency deposit of commercial bank with RBI
(c) Other deposits with RBI
(d) All of the above
Answer
Answer: (d) All of the above
29. The central bank money is known as a monetary base (True/False)
Answer
Answer: True
30. ______ has direct control over high powered money.
(a) Central Bank
(b) Government
(c) Public
(d) All of the above
Answer
Answer: (a) Central Bank
MCQ on Money Class 12
Inflation
31. _______ is defined as a situation in which there is a consistent rise in the general price level of the economy.
(a) Deflation
(b) Deficit demand
(c) Inflation
(d) Excess demand
Answer
Answer: (c) Inflation
32. Which of the following about inflation are correct.
(a) The overall rise in the price of essential goods
(b) The situation of persistent and prolonged rise in prices
(c) The appreciable rise in prices
(d) All of the above
Answer
Answer: (d) All of the above
33. Inflation is expressed in terms of;
(a) Excess demand
(b) Inflation rate
(c) Deflation rate
(d) Deflationary gap
Answer
Answer: (b) Inflation rate
34. Inflation rate is the percentage increase in the overall and average prices of all goods and services from one year to next. (True/ False)
Answer
Answer: True
Economics Class 12 ISC MCQs – Term 2
- Theory of Income and Employment Class 12 MCQ
- Money : Meaning and Functions
- Banks : Commercial Bank and Central bank
- Balance of Payments and Exchange Rate
- Government Budget
- MCQ on Fiscal Policy Class 12 Economics
- National Income and Circular flow of Income
- National Income Aggregates Class 12 MCQ
- Methods of Measuring National Income Class 12 MCQ