Money and Financial System CDS Questions

CDS Economy

Money and Financial System MCQ Questions


13.
Currency notes and coins are called 'fiat money' because they:
A.
Have high intrinsic metallic value
B.
Are issued by commercial banks
C.
Derive their value from the order/guarantee of the issuing authority, not intrinsic value
D.
Can be refused by any citizen as a mode of payment
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ANSWER :
C. Derive their value from the order/guarantee of the issuing authority, not intrinsic value
14.
Currency notes and coins are 'legal tender' which means they:
A.
Can be refused by anyone in payment of debt
B.
Cannot be legally refused by any citizen in settlement of any transaction
C.
Are accepted only by commercial banks
D.
Have intrinsic value equal to their face value
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ANSWER :
B. Cannot be legally refused by any citizen in settlement of any transaction
15.
Which of the following is NOT a legal tender in India?
A.
One rupee coin
B.
Hundred rupee note
C.
Cheque drawn on a savings account
D.
Five rupee coin
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ANSWER :
C. Cheque drawn on a savings account
16.
In India, currency notes are issued by ____ and coins are issued by ____.
A.
Government of India ; Reserve Bank of India
B.
Reserve Bank of India ; Government of India
C.
State Bank of India ; Reserve Bank of India
D.
Reserve Bank of India ; State Bank of India
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ANSWER :
B. Reserve Bank of India ; Government of India
17.
Deposits which are payable by the bank on demand from the account holder are called:
A.
Time deposits
B.
Fixed deposits
C.
Demand deposits
D.
Recurring deposits
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ANSWER :
C. Demand deposits
18.
Fixed deposits, which have a fixed period to maturity, are referred to as:
A.
Demand deposits
B.
Time deposits
C.
Net deposits
D.
Inter-bank deposits
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ANSWER :
B. Time deposits