Banking Awareness Quiz – Set 140

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 a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.
   A. Gold Standard
   B. Silver Standard
   C. Platinum Standard
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Gold Standard
   Explanation:
   Gold Standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.
   
   
2. In which of the following standard the monetary unit is associated with the value of circulating gold coins?
   A. Gold Specie
   B. Gold Bullion
   C. Gold Exchange
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Gold Specie
   Explanation:
   In Gold Specie standard the monetary unit is associated with the value of circulating gold coins
   
   
3. _______ is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for the circulating currency.
   A. Gold Specie
   B. Gold Bullion
   C. Gold Exchange
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. Gold Bullion
   Explanation:
   The gold bullion standard is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for the circulating currency.
   
   
4. Which of the following usually does not involve the circulation of gold coins?
   A. Gold Specie
   B. Gold Bullion
   C. Gold Exchange
   D. All of these
   E. None of these
   
   Answer & Explanation

   C. Gold Exchange
   Explanation:
   Gold Exchange usually does not involve the circulation of gold coins.
   
   
5. ________ is an intrinsically valueless object or record that is widely accepted as a means of payment.
   A. Cash Deposits
   B. Card-to-Card transfers
   C. Call Money
   D. Fiat Money
   E. All of these
   
   Answer & Explanation

   D. Fiat Money
   Explanation:
   In monetary economics, fiat money is an intrinsically valueless object or record that is widely accepted as a means of payment.
   
   
6. 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
   
   Answer & Explanation

   B. Commodity Money
   Explanation:
   Commodity Money is a form of money with an intrinsic value.
   
   
7. Any type of money that has face value greater than its value as material substance is known as _______
   A. Representative Money
   B. Commodity Money
   C. Call Money
   D. Fiat Money
   E. All of these
   
   Answer & Explanation

   A. Representative Money
   Explanation:
   Any type of money that has face value greater than its value as material substance is known as Representative Money.
   
   
8. Which of the following is any globally traded currency that serves as a reliable and stable store of value?
   A. Reserve Currency
   B. Private Currency
   C. Hard Currency
   D. Soft Currency
   E. None of these
   
   Answer & Explanation

   C. Hard Currency 
   Explanation:
   Hard Currency is any globally traded currency that serves as a reliable and stable store of value.
   
   
9. A currency with a value that fluctuates as a result of the country’s political or economic uncertainty is termed as _______
   A. Reserve Currency
   B. Private Currency
   C. Hard Currency
   D. Soft Currency
   E. None of these
   
   Answer & Explanation

   D. Soft Currency
   Explanation:
   A currency with a value that fluctuates as a result of the country’s political or economic uncertainty is termed as Soft Currency.
   
   
10. A strong currency widely used in international trade that a central bank is prepared to hold as part of its foreign exchange reserves is known as _______
    A. Reserve Currency
    B. Private Currency
    C. Hard Currency
    D. Soft Currency
    E. None of these
    
    Answer & Explanation

    A. Reserve Currency
    Explanation:
    A strong currency widely used in international trade that a central bank is prepared to hold as part of its foreign exchange reserves is known as Reserve Currency.