General Awareness Quiz for ECGC PO & Bank Mains Exams 2021- 28th January

Q1. What are the 3 types of money?
(a)Commodity money
(b)Fiat money
(c)Fiduciary money
(d)All of the above
(e)Both A and B

Q2. What is full form of money?
(a)Medium of Exchange to You
(b)Medium of Net Exchange by You
(c)Medium through Exchange by You
(d)Medium to Net Exchange you
(e)None of these

Q3. What are the three measures of money supply?
(a)M1
(b)M2
(c)M3
(d)All of the above
(e)M4

Q4. How many types of cash are there?
(a)Treasury bills
(b)Commercial paper
(c)Marketable securities
(d)Money market fund
(e)All of the above

Q5. In which year does Reserve Bank of India introduced the concept of classification of money into M1, M2, M3 and so on?
(a)1988
(b)1972
(c)1977
(d)1961
(e)1956

Q6. Which among the following is known as Narrow Money?
(a)M1
(b)M2
(c)Both A and B
(d)M4
(e)M5

Q7. Which of the following is a form of money with an intrinsic value?
(a)Representative Money
(b)Commodity Money
(c)Call Money
(d)Fiat Money
(e)All of these

Q8. Any type of Money that has face value greater than its value as material substance is known as_________.
(a)Fiat Money
(b)Call Money
(c)Representative Money
(d)Commodity Money
(e)All of these

Q9. Which of the following is not one of the basic functions of money?
(a)A means of calculating real value
(b)A unit of account
(c)A store of value
(d)A medium of exchange
(e)None of these

Q10. Which one out of the following is most liquid among the measures of money supply?
(a)M1
(b)M2
(c)M3
(d)M4
(e)M0

Q11. Which of the following is the best example of how money is used as a medium of exchange?
(a)Interest rates
(b)Real prices
(c)Nominal prices
(d)Exchange rates
(e)All of the above

Q12. What is a money personality?
(a)Investors
(b)Savers
(c)Big spenders
(d)Debtors
(e)All of the above

Q13. Which of the following is the best example of fiat money?
(a)Paper money
(b)Diamonds
(c)Apples
(d)Gold bullion
(e)Bonds

Q14. Which of the following is the best example of commodity money?
(a)Coinage
(b)Gold bullion
(c)Bonds
(d)Paper money
(e)Interest

Q15. Which one out of the following is least liquid among the measures of money supply?
(a)M1
(b)M2
(c)M3
(d)M4
(e)M5

Solutions

                                         

S1.Ans(d)
Sol. Money comes in three forms: commodity money, fiat money, and fiduciary money.

S2.Ans(b)
Sol. MONEY: Medium of Net Exchange by You.

S3.Ans(d)
Sol. Provides three measures of money – M1, M2, and M3, where M1 is the narrowest and M3 the broadest.

S4.Ans(e)
Sol. There are five types of cash equivalents: Treasury bills, commercial paper, marketable securities, money market funds, and short-term government bonds.

S5.Ans(c)
Sol. Reserve Bank of India introduced the concept of classification of money into M1, M2, M3 in 1977.

S6.Ans(a)
Sol. M1 and M2 are collectively known as Narrow Money.

S7.Ans(b)
Sol. Commodity Money is a form of Money with an intrinsic value.

S8.Ans(c)
Sol. Any type of Money that has face value greater than its value as material substance is known as Representative Money.

S9.Ans(a)
Sol. A means of calculating real value is not one of the basic functions of money.

S10.Ans(a)
Sol. The most liquid among the measures of money supply is M1.

S11.Ans(c)
Sol. Nominal prices is the best example to use as a medium of exchange.

S12.Ans(e)
Sol. Five common money personalities are investors, savers, big spenders, debtors, and shoppers.

S13.Ans(a)
Sol. Paper money is the best example of fiat money.

S14.Ans(e)
So. Gold bullion is the best example of commodity money.

S15.Ans(d)
Sol. The least liquid among the measures of money supply, Liquidity order is M1>M2>M3>M4 i.e. M4 is least liquid.

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