Question 1

It is a kind of money:

Accepted Answer

A) Credit money 
B) Discredit money 
C) Trust money 
D) False money 
A) Credit money 
B) Discredit money 
C) Trust money 
D) False money A

Question 2

According to Keynes people demand money for purposes (motives):

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4 C

Question 3

Which does NOT represent a method of payment?

Accepted Answer

A) Cheque 
B) Saving certificate 
C) Currency note 
D) Bill of exchange 
A) Cheque 
B) Saving certificate 
C) Currency note 
D) Bill of exchange B

Question 4

Cross cheque has a cross sign (X) in the:

Accepted Answer

A) Right side upper corner 
B) Right side lower corner 
C) Left side upper corner 
D) It does not have cross sign (X) 
A) Right side upper corner 
B) Right side lower corner 
C) Left side upper corner 
D) It does not have cross sign (X)

Question 5

Liquidity of a monetary asset means:

Accepted Answer

A) Velocity of circulation of money 
B) Easy availability of money 
C) Ready acceptability of monetary asset 
D) The monetary asset has lost it value 
A) Velocity of circulation of money 
B) Easy availability of money 
C) Ready acceptability of monetary asset 
D) The monetary asset has lost it value

Question 6

Barter means:

Accepted Answer

A) Trade through metallic money only 
B) Trade of goods only excluding services 
C) Trade of very low value goods 
D) Trade without use of money 
A) Trade through metallic money only 
B) Trade of goods only excluding services 
C) Trade of very low value goods 
D) Trade without use of money

Question 7

What will promote savings?

Accepted Answer

A) Increase in credit facilities 
B) Increase in taxation 
C) Increase in personal incomes 
D) Rising prices 
A) Increase in credit facilities 
B) Increase in taxation 
C) Increase in personal incomes 
D) Rising prices

Question 8

This is a characteristic of good money:

Accepted Answer

A) High intrinsic value 
B) General acceptability 
C) Attractive design 
D) High purchasing power 
A) High intrinsic value 
B) General acceptability 
C) Attractive design 
D) High purchasing power

Question 9

According to Keynes, motives for holding money are:

Accepted Answer

A) Two 
B) Three 
C) Four 
D) Five 
A) Two 
B) Three 
C) Four 
D) Five

Question 10

Which is NOT a desirable characteristic of money?

Accepted Answer

A) Portable 
B) Uniform 
C) Easily recognized 
D) Easily duplicated 
A) Portable 
B) Uniform 
C) Easily recognized 
D) Easily duplicated

Question 11

Treasury Bill is a document used for:

Accepted Answer

A) A short-term loan to the exporter 
B) A long-term loan to the government 
C) A short-term loan to the government 
D) A short-term loan to a govt. employee 
A) A short-term loan to the exporter 
B) A long-term loan to the government 
C) A short-term loan to the government 
D) A short-term loan to a govt. employee

Question 12

Anything used as money must be:

Accepted Answer

A) Fixed in value 
B) Fixed in supply 
C) Legal tender 
D) Readily acceptable 
A) Fixed in value 
B) Fixed in supply 
C) Legal tender 
D) Readily acceptable

Question 13

Quantity Theory of Money explains that:

Accepted Answer

A) Value of money depends upon quantity of money 
B) Rate of interest depends upon quantity of money 
C) Quantity of investment depends upon quantity of money 
D) Supply of money depends upon quantity of money 
A) Value of money depends upon quantity of money 
B) Rate of interest depends upon quantity of money 
C) Quantity of investment depends upon quantity of money 
D) Supply of money depends upon quantity of money

Question 14

If money supply in a country decrease:

Accepted Answer

A) Prices will rise 
B) Prices will fall 
C) Rate of interest falls 
D) (b) and (c) of above 
A) Prices will rise 
B) Prices will fall 
C) Rate of interest falls 
D) (b) and (c) of above

Question 15

This is a characteristic of good money:

Accepted Answer

A) High intrinsic value 
B) Liquidity 
C) Attractive design 
D) Easy to duplicate 
A) High intrinsic value 
B) Liquidity 
C) Attractive design 
D) Easy to duplicate

Question 16

In the equation MV = PY, V represents:

Accepted Answer

A) Value of money 
B) Velocity of circulation of money 
C) Variation of nation income 
D) All of the above 
A) Value of money 
B) Velocity of circulation of money 
C) Variation of nation income 
D) All of the above

Question 17

Government securities:

Accepted Answer

A) Mean currency 
B) Are near money 
C) Are bought and sold on stock exchange market 
D) (b) and (c) of above 
A) Mean currency 
B) Are near money 
C) Are bought and sold on stock exchange market 
D) (b) and (c) of above

Question 18

Which is the characteristic of a good money:

Accepted Answer

A) Has good design 
B) Has high value 
C) Has a fixed value in gold 
D) Is readily accepted by people 
A) Has good design 
B) Has high value 
C) Has a fixed value in gold 
D) Is readily accepted by people

Question 19

Which property paper money does NOT Possess?

Accepted Answer

A) Acceptability 
B) Divisibility 
C) Durability 
D) Portability 
A) Acceptability 
B) Divisibility 
C) Durability 
D) Portability

Question 20

Speculative demand for money depends upon:

Accepted Answer

A) Income 
B) Investment 
C) Rate of interest 
D) Central bank 
A) Income 
B) Investment 
C) Rate of interest 
D) Central bank

It is a kind of money:

According to Keynes people demand money for purposes (motives):

Which does NOT represent a method of payment?

Cross cheque has a cross sign (X) in the:

Liquidity of a monetary asset means:

Barter means:

What will promote savings?

This is a characteristic of good money:

According to Keynes, motives for holding money are:

Which is NOT a desirable characteristic of money?

Treasury Bill is a document used for:

Anything used as money must be:

Quantity Theory of Money explains that:

If money supply in a country decrease:

This is a characteristic of good money:

In the equation MV = PY, V represents:

Government securities:

Which is the characteristic of a good money:

Which property paper money does NOT Possess?

Speculative demand for money depends upon:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Understanding Public Finance and Business Cycles

Filters

Exam 4: Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

It is a kind of money:

According to Keynes people demand money for purposes (motives):

Which does NOT represent a method of payment?

Cross cheque has a cross sign (X) in the:

Liquidity of a monetary asset means:

Barter means:

What will promote savings?

This is a characteristic of good money:

According to Keynes, motives for holding money are:

Which is NOT a desirable characteristic of money?

Treasury Bill is a document used for:

Anything used as money must be:

Quantity Theory of Money explains that:

If money supply in a country decrease:

This is a characteristic of good money:

In the equation MV = PY, V represents:

Government securities:

Which is the characteristic of a good money:

Which property paper money does NOT Possess?

Speculative demand for money depends upon:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Understanding Public Finance and Business Cycles

Filters