Banking Awareness Quiz – Set 195

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. _______ is money whose value comes from a commodity of which it is made.
   A. Commodity Money
   B. Token Money
   C. Paper Money
   D. Fiat Money
   E. Optional Money
   
   Answer & Explanation

   A. Commodity Money
   Explanation:
   Commodity Money is money whose value comes from a commodity of which it is made.
   
   
2. Any unit of money, whose face value and intrinsic value are equal, is known as ______
   A. Commodity Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Optional Money
   
   Answer & Explanation

   B. Full bodied Money
   Explanation:
   Any unit of money, whose face value and intrinsic value are equal, is known as Full bodied Money.
   
   
3. ________ is money whose face value exceeds its cost of production.
   A. Commodity Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Token Money
   
   Answer & Explanation

   E. Token Money
   Explanation:
   Token Money is money whose face value exceeds its cost of production.
   
   
4. Which of the following is known as Non-Legal Tender Money?
   A. Commodity Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Optional Money
   
   Answer & Explanation

   E. Optional Money
   Explanation:
   Optional Money is known as Non-Legal Tender Money
   
   
5. Which of the following refers to that form of legal tender money that can be paid in discharge of a debt up to a certain limit?
   A. Limited Legal Tender Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Unlimited Legal Tender Money
   
   Answer & Explanation

   A. Limited Legal Tender Money
   Explanation:
   Limited Legal Tender Money refers to that form of legal tender money that can be paid in discharge of a debt up to a certain limit.
   
   
6. Which of the following refers to that form of legal tender money, that can be paid in discharge of a debt of any amount?
   A. Limited Legal Tender Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Unlimited Legal Tender Money
   
   Answer & Explanation

   E. Unlimited Legal Tender Money
   Explanation:
   Unlimited Legal Tender Money refers to that form of legal tender money, that can be paid in discharge of a debt of any amount
   
   
7. Which of the following is an example of Optional Money?
   A. Cheque
   B. Bills of exchange
   C. Promissory Notes
   D. All of these
   E. None of these
   
   Answer & Explanation

   D. All of these
   Explanation:
   Cheque, Bills of Exchange and Promissory Notes are the examples of Optional Money.
   
   
8. _________ is any future monetary claim against an individual that can be used to buy goods and services.
   A. Limited Legal Tender Money
   B. Credit Money
   C. Paper Money
   D. Fiat Money
   E. Unlimited Legal Tender Money
   
   Answer & Explanation

   B. Credit Money
   Explanation:
   Credit Money is any future monetary claim against an individual that can be used to buy goods and services.
   
   
9. _______ is an item such as a token or piece of paper that has no intrinsic value but can be exchanged on demand for a commodity that does have intrinsic value
   A. Representative Money
   B. Full bodied Money
   C. Paper Money
   D. Fiat Money
   E. Unlimited Legal Tender Money
   
   Answer & Explanation

   A. Representative Money
   Explanation:
   Representative Money is an item such as a token or piece of paper that has no intrinsic value but can be exchanged on demand for a commodity that does have intrinsic value
   
   
10. Which of the following is an example of Representative Money?
    A. Gold
    B. Silver
    C. Tobacco
    D. None of these
    E. All of these
    
    Answer & Explanation

    E. All of these
    Explanation:
    Gold, Silver, Copper, and Tobacco are the examples of Representative Money