The two broad monetary standards found in the history of money are
Gold standard and silver standard
Bimetallism and trimetallism
Monometallism and bimetallism
Commodity standard and paper-money standard
“Bad money drives good money out of circulation.” This is a statement of
Monetary policy rule.
Okun’s law.
Gresham’s law.
The paradox of thrift
A situation marked by rising prices and stagnation in demand is known as
Cost-push inflation
Demand – pull inflation
Stagflation
Wage – push inflation
During inflation
Businessman gain
Wage earners gain
Salaried people gain
Rentiers gain
Currency with the public is known as
M1
M2
M3
M4
The essential characteristic required before any substance can function as money is that
It be issued by the government
It be backed by a precious metal
The supply of it be unlimited and uncontrolled
People accept it as money
Which of the following is the correct definition of M1 money supply?
Currency held in and outside the banks plus notice deposits at chartered banks
Currency in circulation plus demand deposits at chartered banks
Currency held in and outside the banks plus demand deposits at chartered banks
Currency in circulation plus demand deposits at chartered banks and near banks
Under the pure gold standard
Circulating notes are fully backed by gold.
The authorities can easily manipulate the money supply
Price stability is difficult to achieve
The power of monetary policy is unlimited
A coincidence of wants happens exists when
Two people want the same thing at the same time
One person wants to but two different things at the same time
The individual who has what I want, also wants what I have
All the above
Barter works best
In the absence of a double coincidence of wants
When many different product are available in the economy when money is relatively available to establish relative prices
When money is relatively available to establish relative prices
When each trader has what the other wants and wants what the other has
