Question # 1

Pursching power of money during defiation is.

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Increased

Reduced

Constant

Fluctuating

Value of money and supply of money are related.

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Inversely

Directly

Govt.Law

Are not related

If we put this letter in the blank space we get quantity theory of money PY =M

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S

T

V

A

The quantity demanded of money rises.

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As the intrest rate falls

As the intrest rate rises

As the supply of money falls

As the number of banks rises

Drung inflation

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Lenders lose borrowers gain

Borrowers and lenders both ose

Borrows lose lenders gain

All sections of the society gain

It is assumption of quantity theory of money

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Velocity of circulation of money constant

Affects only industrial sector

Makes distribution of national income better

Has no effect on distribution of income

Value of circulation money means by number of times a unit of money

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Change hands daily

Change hand annually

change hands montly

Change purchacing power

For the economy prices are beneficial

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Falling slowly

Rising slowly

Rising fast

Falling fast

When the nations money supply is Rs. 1200 million and GDP is Rs. 4800 billion. velocity of circulation money is.

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0.25

4

0.4

Billion Rupees

Under normal circumstances the velocity of circulation of money in a contry is.

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100%

negative

Less than 10

Zero

According to keynes demand for money is affected by

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Income

Rate of intest

Literacy rate

a and b of above

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Icom Part 2 Principles of Economics Chapter 4 English Medium Online Test MCQs With Answers

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