50 mcqs with Explanation **Money & Banking MCQs** 1. **What is the primary function of money?** a) To provide a store of value b) To be a medium of exchange c) To be a unit of account d) All of the above **Answer:** d) All of the above **Explanation:** Money serves as a medium of exchange (facilitating transactions), a unit of account (allowing us to measure value), and a store of value (allowing us to save purchasing power). 2. **Which of the following is NOT a characteristic of money?** a) Durability b) Divisibility c) Intrinsic value d) Portability **Answer:** c) Intrinsic value **Explanation:** Money doesn't need to have intrinsic value (value in itself) to function effectively. Fiat money (like paper currency) has value because the government declares it to be legal tender. 3. ...
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