Practice Conclusion and Summary - 6 | Chapter 3: Money and Banking | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What are the key functions of money?

πŸ’‘ Hint: Use the acronym M.U.S.T.

Question 2

Easy

What is the role of a central bank?

πŸ’‘ Hint: Think about the highest authority in monetary policy.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What are the main functions of money?

  • Medium of Exchange
  • Store of Value
  • Unit of Account
  • Credit Creation
  • All of the above

πŸ’‘ Hint: Remember the term M.U.S.T

Question 2

True or False: Commercial banks do not play a role in the creation of money.

  • True
  • False

πŸ’‘ Hint: Think about the bank's function in finance.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Evaluate how a significant increase in the money supply might impact economic stability.

πŸ’‘ Hint: Consider both the short-term and long-term effects on the economy.

Question 2

Propose a strategy for a central bank to combat rising inflation rates effectively.

πŸ’‘ Hint: Think about how altering these factors impacts consumer behavior and economic activity.

Challenge and get performance evaluation