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Class 12 Money and Banking worksheet
CBSE Social Science. Functions of money, M1 to M4, credit creation and the money multiplier, CRR, bank rate, repo and open market operations. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
A system where goods are exchanged directly for goods is:
- credit
- fiat money
- banking
- barter
Answer
(d) barter
- 2.
Which function of money is shown by comparing the values of a cow and a cart in rupees?
- unit of account
- credit creation
- collateral
- legal reserve
Answer
(a) unit of account
- 3.
If banks must keep 10% of deposits as reserves, what is the money multiplier?
- 90
- 0.1
- 11
- 10
Answer
(d) 10
1 ÷ 0.1
Section B · short answer
- 4.
What is a double coincidence of wants?
Answer
In barter, each person must want exactly what the other offers, which is hard to find.
- 5.
Legal tender or not legal tender? (a) a credit card payment (b) a cheque
Answer
(a) not legal tender (b) not legal tender
Section C · long answer
- 6.
Explain how commercial banks create money (credit).
Answer
A deposit lets a bank keep a fraction as reserves and lend the rest; the loan is spent and redeposited, so deposits grow by a multiple of the first deposit.
Fresh sheets for your child
In the app, every Money and Banking sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
Coming soon for Android and iPhone.