Question # 1

The paper notes which can not be converted in gold, silver, or foreign exchange, are called

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Standard money

Convertible paper money

Inconvertible paper money

Legal tender money

Quantity theory of money in the form of an equation was presented by

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Prof Fisher

Prof Taussig

Prof Marshall

Prof Renald

______ is not considered perfect money

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Note of ten rupees

Note of hundred rupees

Piece of silver

Note of one thousand rupees

The money which is not in the form of net cash and is not used at once for business dealing is called

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Near money

Legal Tender money

Credit money

Paper money

When demand for goods and services rises, then velocity of circulation of money

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Increases

Decreases

Remains constant

Does not change

By which money business dealing has become easy

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Metalic money

Paper money

Credit money

Near money

The coins whose current price is greater than their intrinsic value, are called

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Standard coins

Paper money

Token money

Credit money

Inconvertible paper money is issued by

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Central bank

Commercial bank

Industrial bank

Central government

One of the following is not the fiscal measure to control inflation

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Decrease in public expenditures

Increase in the value of money

Increase in taxes

Encouragement of saving

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 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

kinds of money are

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Three

Four

Five

Seven

"Anything which is generally accepted as a medium of exchange and also performs the functions of standard of value and a store of value is money"
This definition of money is stated by

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Prof Walker

Prof Marshall

Prof Crowther

Prof Pigou

"What performs the functions of money, is money"
This definition of money is stated by

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Prof Walker

Prof Marshall

Prof Crowther

Prof Pigou

When there is deflation, then prices

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Increase

Decrease

Remain constant

do not change

Disadvantages of paper money are

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Unstable value

Possibility of inflation

Possibility of wastage

All the three

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

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