Money and banking
3.1What the syllabus asks of you
- Money: forms, functions and characteristics of money
- Banking: role and importance of central banks
- Banking: role and importance of commercial banks
Read the notes first
Chapter 3: Money and banking
Drill this topic
Every question on Money and banking, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
28 questions
1May / June 2026 · Paper 12 · Q10Show mark scheme →
Adeferred payment
Bunit of account
Cstore of value
Dmedium of exchange
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2Oct / Nov 2025 · Paper 12 · Q10Show mark scheme →
Ato act as the lender of last resort
Bto hold deposits from the general public
Cto issue notes and coins
Dto manage the gold reserves of the country
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3Oct / Nov 2025 · Paper 13 · Q10Show mark scheme →
AThey are backed by gold.
BThey are durable.
CThey are generally acceptable.
DThey have intrinsic value.
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4Oct / Nov 2024 · Paper 12 · Q10Show mark scheme →
Aattempts to achieve price stability
Bissues credit cards
Cprovides loans to producers
Dprovides savings accounts for consumers
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5Oct / Nov 2024 · Paper 13 · Q10Show mark scheme →
Aaccepting deposits
Bcontrolling money supply
Cissuing notes and coins
Dlending money to the government
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6May / June 2024 · Paper 12 · Q15Show mark scheme →
Aa medium of exchange
Ba standard of deferred payment
Ca store of wealth
Da unit of account
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7Oct / Nov 2023 · Paper 12 · Q11Show mark scheme →
Acash
Bdebit cards
Ccredit cards
Dsmartphones
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8Oct / Nov 2023 · Paper 12 · Q12Show mark scheme →
Acentral bank
Bcommercial bank
Cinvestment bank
DWorld Bank
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9May / June 2023 · Paper 11 · Q11Show mark scheme →
Acash
Bgold
Cproperty
Dshares
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10May / June 2023 · Paper 12 · Q11Show mark scheme →
Ameans of deferred payments
Bmedium of exchange
Cstore of value
Dunit of account
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11May / June 2023 · Paper 12 · Q12Show mark scheme →
AMoney allows people to borrow and lend.
BMoney allows people to save their surplus income.
CMoney is used to buy goods and services.
DMoney is used to compare the worth of different goods and services.
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12Oct / Nov 2022 · Paper 12 · Q9Show mark scheme →
Ano yes no
Bno yes yes
Cyes no no
Dyes no yes
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13Oct / Nov 2022 · Paper 12 · Q10Show mark scheme →
AThey are more divisible.
BThey are more durable.
CThey are more portable.
DThey are more recognisable.
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14Oct / Nov 2022 · Paper 13 · Q9Show mark scheme →
Ano yes no
Bno yes yes
Cyes no no
Dyes no yes
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15Oct / Nov 2022 · Paper 13 · Q10Show mark scheme →
AThey are more divisible.
BThey are more durable.
CThey are more portable.
DThey are more recognisable.
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16May / June 2022 · Paper 11 · Q28Show mark scheme →
Acentral bank — regulate the rate of inflation
Bcentral bank — set direct tax rates
Ccommercial bank — manage the government's financial accounts
Dcommercial bank — safeguard the country's foreign reserves
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17May / June 2022 · Paper 12 · Q15Show mark scheme →
Acentral bank — regulate the rate of inflation
Bcentral bank — set direct tax rates
Ccommercial bank — manage the government's financial accounts
Dcommercial bank — safeguard the country's foreign reserves
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18May / June 2021 · Paper 11 · Q9Show mark scheme →
AInflation reduces the value of paper money.
BMore ways of making payments will be available.
COther forms of money are more durable.
DPaper money will have less intrinsic value.
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19Oct / Nov 2020 · Paper 13 · Q9Show mark scheme →
Aacceptability | medium of exchange
Bcash | measure of value
Cdivisibility | portability
Dstore of value | bank deposit
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20Oct / Nov 2019 · Paper 12 · Q9Show mark scheme →
Aacting as lender of last resort
Bissuing notes and coins
Coperating the government's monetary policy
Dsetting the government's budget
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21Oct / Nov 2019 · Paper 13 · Q9Show mark scheme →
Acentral bank: no; commercial banks: yes; government: no
Bcentral bank: no; commercial banks: yes; government: yes
Ccentral bank: yes; commercial banks: no; government: no
Dcentral bank: yes; commercial banks: no; government: yes
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22Oct / Nov 2018 · Paper 12 · Q8Show mark scheme →
Ato cover credit card debts of consumers
Bto provide liquidity to the banking system
Cto remove failing banks from the financial system
Dto safeguard the profits of the banking system
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23Oct / Nov 2018 · Paper 13 · Q8Show mark scheme →
Ato act as lender of last resort to commercial banks
Bto provide a market for the purchase and sale of shares
Cto provide short-term loans for investment
Dto set interest rates within the country
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24May / June 2018 · Paper 11 · Q8Show mark scheme →
Aaccepting deposits from the public
Bdetermining tax rates
Cimplementing monetary policy
Dlending to businesses
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25May / June 2018 · Paper 12 · Q8Show mark scheme →
Acash
Bbonds
Cloans
Dmortgages
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26May / June 2017 · Paper 12 · Q8Show mark scheme →
ACommercial banks’ main activity is the finance of international trade.
BPaper banknotes possess all the desirable properties needed to act as money.
CStock exchanges trade mainly in second-hand stocks and shares.
DThe central bank acts as the lender of last resort to companies facing bankruptcy.
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27May / June 2016 · Paper 11 · Q9Show mark scheme →
AThey are acceptable for trade and exchange.
BThey are backed by gold at the central bank.
CThey are convertible into the US$ or Chinese Yuan.
DThey are recognisable and in infinite supply.
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28May / June 2016 · Paper 12 · Q9Show mark scheme →
Awhen a commercial bank faces a liquidity crisis
Bwhen a commercial bank fails to make a profit
Cwhen a commercial bank needs to raise share capital
Dwhen a commercial bank reduces its lending rates
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