Characteristics of Money

Q.

List the key characteristics of money.

Q.

What is 'legal tender'? What is 'fiat money'?

Q.

What is fiduciary money?

Q.

Explain the significance of the "Store of Value" function of money.

Q.

What is a ‘legal tender’? What is ‘fiat money’?

Q.

The Central Bank in India is called:

1. Federal Reserve of India

2. Indian Central Bank

3. Bank of India

4. Reserve Bank of India

Q.

Money that is issued by the authority of the government is called:

1. full bodied money

2. credit money

3. fiat money

4. fiduciary money

Q.

What are the main functions of money? How does money overcome the shortcomings of a barter system?

Q.

What is the significance of centralised cash reserves with central bank?

Q. State any three characteristics of money.

Q. What is a 'legal tender'? What is 'fiat money?

Q.

Which of the following is a key property of money?

1. Visual appeal

2. Divisibility

3. Customisation

4. Large availability

Q.

The ability of money to be moved easily is called:

1. Portability

2. Uniformity

3. Fungibility

4. Statis

Q. ICICI bank is a _______.

1. private commercial bank
2. rural regional bank
3. nationalized bank
4. central bank

Q. The Reserve Bank of India was established in the year _________.

1. 1935
2. 1969
3. 1947
4. 1951

Q.

To act as money, divisibility is a more important characteristic than portability. State true or false.

1. True

2. False

Q. Distinguish between Legal Tender Money and Credit Money or Bank Money.

Q. Money supply does not include money held by government and banking system, since, money held by them do not come into actual circulation in the country.

1. True
2. False

Q. Write Short Notes on Types of Paper Money.

Q.

How we are able to identify that which one is FIAT MONEY which one is LEGAL TENDER MONEY?

Q. A cheque is fiat money.

1. true
2. false

Q. What is the important measure taken by the central bank to keep money supply under control?

1. Fiscal Policy
2. Monetary Policy
3. Overvaluation
4. Revaluation

Q.

Comparing rice and a cow, which would serve as better money in terms of divisibility alone?

1. Rice

2. A cow

3. Both are equally divisible

4. Can't say

Q. All these characteristics are required for any item to qualify as money except.

1. be divisible
2. be portable
3. be made of metal
4. be countable

Q. Which of the following refers to the Goiporia committee?

1. Banking sector reforms
2. New economic reforms
3. Customer service reforms
4. Establishment of the RBI

Q.

For money to serve as money, it must be unlimited in supply. State true or false.

1. True

2. False

Q. Which of the following are considered as money?

1. Metallic money
2. Financial investment
3. Both a & b
4. None of the above

Q. Currency notes in India are printed and supplied by _____.

1. Security Press, Noida
2. RBI, New Delhi
3. Security Press, Nasik
4. Security Press, Mumbai

Q. Who watches over the financial sector in India?

1. IRDA
2. MCA
3. RBI
4. SEBI

Q. Explain the following term: Fiat money.