MCQs on Commercial Bank Money – Money made by banks | Economics

Commercial Banks Money is the money which is generated by the commercial bank by providing services and deliver loan to their customers and business entities such as personal loan, auto loans, housing loans, education loans, mortgage loan, pledge loan and also providing over draft facility to their customers. The commercial bank generate their earning through the generated interest income on the provided loan.

Here are some MCQ / Quiz questions on Commercial Bank Money.

Let’s start the MCQs / Quiz

01) Commercial Banks Money is the money which is generated by banks by their earning on the income on providing _________ and ___________. Fill in the blanks with suitable option.

A) Loans
B) Services
C) Education
D) Option A & B both

Correct answer is option “D”

02) Whether this statement is true or not true that “The term commercial bank money describes the portion of a currency which is made of book money of debt generated by commercial banks”?

A) Not True
B) True

Correct answer is option “B”

03) Whether the following statement is true that the Central Bank or The Monetary Authority of any country are also earn their income through loan provided to the public?

A) Not True
B) True

Correct answer is option “A”

04) Which type of money from the given options does not represent legal tender?

A) Central Bank Money
B) Commercial Bank Money
C) Base Money
D) Sovereign Money,

Correct answer is option “B”

MCQs on General Awareness | World Currency | Strongest Currency | Weakest Currency | GK Question

05) The banks is created Commercial Bank Money when__________?

A) Banks make the use of fractional reserve banking to create account balances
B) Bank make loans worth many times the value of the actual base currency they hold.
C) Only option “A”
D) Both option “A” & “B”

Correct answer is option “D”

06) How a bank creates commercial bank money which they actually does not have?

A) Generate income on the services provided to the account holders
B) By lend out the money to their customers.
C) Only option “B”
D) “A” & “B” both

Correct answer is option “D”

07) What do you understand the term “Scriptural Money”?

A) Money available as book money (charges occur for the services provided to their account holders to maintain their accounts).
B) Money held by a bank in electronic or other non-cash forms
C) Money based on all non-cash transactions, such as income on using to debit and credit cards.
D) All the above

Correct answer is option “D”

Try more MCQ’s…….

Classification of money

Commodity Money

Fiat Money

Credit Money

Fiduciary Money

Metallic Money

Legal Tender

Paper Money

Representative Money

Full Bodied money

अन्य विषयों पर अधिक MCQ करने के लिए यहां क्लिक करें

Wish you all the best for a brightest future.

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