Economics Practice Quiz 38

Q1.What is the central idea linking modern forms of money?

A. The banking system B. Government policies C. International trade agreements D. Digital transaction platforms

Q2.What development is contributing to the spread of newer forms of money in India?

A. Computerisation of the banking system B. Increased foreign direct investment C. Growth of e-commerce companies D. Government subsidies for startups

Q3.What constitutes the stock of money?

A. Currency held by the public and demand deposits with banks B. Gold reserves and foreign exchange holdings C. Government bonds and treasury bills D. Corporate shares and mutual fund investments

Q4.In India, during which month and year were Rs. 500 and Rs. 1,000 currency notes declared invalid?

A. November 2016 B. December 2015 C. January 2017 D. October 2014

Q5.Following the declaration of invalidity of Rs. 500 and Rs. 1,000 notes in November 2016, what were people asked to do?

A. Surrender these notes to the bank by a specific period and receive new currency B. Exchange them at post offices for smaller denominations C. Donate them to government-approved charities D. Keep them as historical artifacts

Q6.What term is used to describe the process where some currency notes are declared invalid and replaced by new currency?

A. Demonetisation B. Nationalisation C. Privatisation D. Globalisation

Q7.Which of the following digital transaction methods was encouraged after demonetisation in India (November 2016)?

A. UPI system B. Barter system C. Gold coin exchange D. Foreign currency trading

Q8.What are the primary reasons mentioned in the text for promoting digital transactions?

A. To reduce the requirement of cash for transactions and control corruption B. To increase government revenue and foreign investment C. To boost agricultural output and industrial growth D. To stabilize exchange rates and reduce inflation

Q9.What is identified as a crucial element in economic life in the text?

A. Credit B. Barter C. Taxation D. Subsidies

Q10.What crucial issue regarding credit is highlighted in the text, especially concerning the poor?

A. Its availability to all, especially the poor, and on reasonable terms B. Its impact on international trade agreements C. Its role in government budgeting and fiscal policy D. Its regulation by central banks and financial institutions

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Economics Practice Quiz 38