CLASS – TEST – XII (c) Generated in the form of credit creation
SUBJECT- ECONOMICS (d) none of these
CH – 5 (Money) 6. Assertion(A): Money supply includes money held by all
Time :35 mins MM-20 the financial institutions.
1. In India, coins are issued by : Reason (R): Money held by the government does not
(a) State bank of India (b) Reserve bank of India come in to circulation.
(c) Ministry of finance (a) Both Assertion (A) and Reason (R) are true and Reason
(d) Ministry of Urban Development (R) is the correct explanation of Assertion (A).
2. Supply of money is a (b) Both Assertion (A) and Reason (R) are true but Reason
(a) Flow variable (b) Stock variable (A) is not the correct explanation of Assertion (A)
(c) real flow (d) none of these (c) Assertion (A) is true but Reason (R) is false
3. ‘Money Is an asset which can be stored for use in future’ (d) Assertion (A) is false but Reason (R) is true
.In the light of given statement, identify the function of 7. High powered money is equal to:
money. (a) Money supplied by RBI only
(a) A measure of value (b) Total supply of money in economy
(b) A standard of deferred payments (c) Notes and coins held by the people
(c) A store of value (d) Money (notes and coins) held by the people,
(d) A medium of exchange vault -cash of the commercial banks as well as cash
4. The total stock of money in circulation among the public Reserves of commercial banks with the RBI (1)
________ is called a “Money supply” 8. Explain how the introduction of money has led to
(a) during a period of time (b) during a calendar year expansion of markets? (3)
(c) during a fiscal year 9. How evolution of money has separated the act of sale and
(d) at a particular point of time purchase? (3)
5. Bank money a that money which is: 10. Explain two functions of money. (3)
(a) printed by RBI 11. What do you mean by money supply? Explain the various
(b) Printed by the government components of it. (4)
