Macro

Money & Banking

Medium

Identify the incorrect statement.

(A) Money is what money does

(B) There are many assets which carry functions of money

(C) In modern sense, money creates instability

(D) The first and foremost role of money is that it acts as medium of exchange

(E) Money acts only as convenient unit of account

Choose the correct answer from the options given below :

(A) and (B) only

(D) ands (E) only

✅ Correct Option: 2

Statement (E) is incorrect because money performs several functions (medium of exchange, store of value, standard of deferred payment, unit of account), not only as a unit of account. Statement (C) is also considered incorrect in NCERT, which does not describe money as inherently creating instability. Hence (C) and (E) are incorrect.

2025: 16 May Shift 1

Currency of which denomination were newly launched during demonetization?

2026: 11 May Shift 2

From the following, choose the correct options as the functions of the Reserve Bank of India.

A. Regulates the reserve requirements of commercial banks.

B. Sterilizes the money supply in the economy against external shocks.

C. Maintains the deposits of the public.

D. Regulates money supply by controlling the stock of high-powered money.

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Among the following, which are the functions of money?

(A) Medium of exchange.

(B) Unit of account.

(D) Store of value

Choose the correct answer from the options given below:

2025: 29 May Shift 1

During deficient demand, RBI __________ the margin.

2025: 27 May Shift 2

When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?

2026: 6 June Shift 1

In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market?

Solution

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