ICS Part 2 Economics English Medium Chapter 4 Online Test With Answers

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ICS Part 2 Economics English Medium Chapter 4 Online Test

Sr. # Questions Answers Choice
1 It is assumption of quantity theory of money Velocity of circulation of money constant Affects only industrial sector Makes distribution of national income better Has no effect on distribution of income
2 Velocity of circulation of money means. Total demand for money Annual increase in currency notes Number of timesa unit of money changes hands total supoly of money
3 If we put this letter in the blank space we get quantity theory of money PY =M S T V A
4 They are NOT much affected by rising prices. Salaried persons Business Debtors Importers
5 Value of money and supply of money are related. Inversely Directly Govt.Law Are not related
6 Value of money means General purchasing power of money Gold purchased by money Demand for money Importance of money
7 According to Keynes people demand money for purposes . 1 2 3 4
8 For the economy prices are beneficial Falling slowly Rising slowly Rising fast Falling fast
9 The quantity demanded of money rises. As the intrest rate falls As the intrest rate rises As the supply of money falls As the number of banks rises
10 Drung inflation Lenders lose borrowers gain Borrowers and lenders both ose Borrows lose lenders gain All sections of the society gain
11 According to keynes demand for money is affected by Income Rate of intest Literacy rate a and b of above
12 Banks discount it and adance loans. Draft Bill of Exchange pay order Gold
13 Under normal circumstances the velocity of circulation of money in a contry is. 100% negative Less than 10 Zero
14 Which One is equation of exchange. PT = MV PV = MT PM = TV None
15 When the nations money supply is Rs. 1200 million and GDP is Rs. 4800 billion. velocity of circulation money is. 0.25 4 0.4 Billion Rupees
16 When value of money falls, they benefits more Debtors Lenders Farmers Industrialist
17 Value of money in pakistan in determined by Govt of Pakistan General Price Level State Bank Pakistan Value of Dollar
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