Question : Medium of exchange is ……… function of money. 
 

Option 1: Primary function 
 

Option 2: Secondary function 
 

Option 3: Common function 
 

Option 4: None of the above 
 

Question : . ……………. refers to money backed by the order or authority of the government.

Option 1: Legal tender money                                 

Option 2: Fiat money

Option 3: Fiduciary money                                         

Option 4: Both (a) and (c)

Question : Paper money is also called ___________.
 

Option 1: Local money 
 

Option 2: Bank money  
 

Option 3: Fiat money 
 

Option 4: None of the above 
 

Question : Bank draft is called ______________.
 

Option 1: Bank money 
 

Option 2: Paper money  
 

Option 3: Individual money  
 

Option 4: All of above 
 

Question : Which of the following statement is correct?

• Only gross demand deposits are part of money supply.
• Bank money is non-legal tender money.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.