Question # 1

World economic depression accured in

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1927

1928

1929

1931

MRP curve of a factor represents:

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Demand of factors

Supply of factors

Price of factors

Both a and c

Basic characteristics of good money are

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General acceptability, durability

Homogeneity,divisibility

Transferability, recognizability, convertibility

All

One of the following is not the difficulty of the barter system

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Indivisibility of goods

Lack of common measure of value

Double coincidence of wants

Lack of store of value

What is money

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Coins of gold and silver

Paper money

Agricultural crops

Everything which can be used as a medium of exchange

Inconvertible paper money is issued by

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Central bank

Commercial bank

Industrial bank

Central government

Value of money means purchasing power of money. If quantity of money is doubled then

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Purchasing power of money will be one halved

Purchasing power of money will be doubled

Purchasing power of money will be tripled

There will be no effect on the purchasing power of money

Inflation is useful for

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Labourer

Consumers

Industrialist

Pensioners

If face value is equal to the metal value of a coin, it is called as

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Paper money

Token money

Credit money

Standard money

Saving deposits and time deposits of the banks, Govt. securities and shares of the companies are called

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Token money

Money of account

Standard money

Near money

The purchasing power of money is called

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value of money

Medium of exhange

quantity of money

credit money

According to quantity theory of money, if quantity of money is doubled then prices are doubled while value of money is

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Doubled

One halved

Less than one halved

Not influenced

What effects are expected on the purchasing power of money during deflation

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Decreases

Increases

Remains constant

2nd and 3rd

Prof Fisher presented quantity theory of money in the form of an equation in

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1905

1911

1915

1917

Inflation is created

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When demand for goods is less than their supply

When demand for goods is more than their supply

When demand for goods becomes equal to their supply

When demand and supply of goods do not change

One of the following is not the method to control deflation

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Decrease in public expenditures

Decrease in interest rate

Decrease in income tax

increase in exports

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Principles of Economics Icom Part 1 English Medium Chapter 10 Online Test MCQs With Answers

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