Tamil Nadu (English Medium) Plus 2 Humanities Study Materials, Online Learning, Question Papers, Classnotes, Practice Test, MCQ | Smartindia Educational Program : www.smartindia.net.in

Question-1 The exchange of commodities for commodities is called

(A) Barter	(B)Indirect exchange
(C)Asset transformation	(D)Monetary exchange

Question-2 Which of the following is the correct definition of M1 money supply?

(A) Currency held in and outside the banks plus notice deposits at chartered banks	(B)Currency in circulation plus demand deposits at chartered banks
(C)Currency held in and outside the banks plus demand deposits at chartered banks	(D)Currency in circulation plus demand deposits at chartered banks and near banks

Question-3 A coincidence of wants happens exists when

(A) Two people want the same thing at the same time	(B)One person wants to but two different things at the same time
(C)The individual who has what I want, also wants what I have	(D)All the above

Question-4 The two broad monetary standards found in the history of money are

(A) Gold standard and silver standard	(B)Bimetallism and trimetallism
(C)Monometallism and bimetallism	(D)Commodity standard and paper-money standard

Question-5 “Bad money drives good money out of circulation.” This is a statement of

(A) Monetary policy rule	(B)Okun’s law
(C)Gresham’s law	(D)The paradox of thrift

Question-6 Bank rate is raised during

(A) Deflation	(B)Inflation
(C)Stable prices	(D)Unemployment

Question-7 The essential characteristic required before any substance can function as money is that

(A) It be issued by the government	(B)It be backed by a precious metal
(C)The supply of it be unlimited and uncontrolled	(D)People accept it as money

Question-8 A situation marked by rising prices and stagnation in demand is known as

(A) Cost-push inflation	(B)Demand – pull inflation
(C)Stagflation	(D)Wage – push inflation

Question-9 During inflation

(A) Businessman gain	(B)Wage earners gain
(C)Salaried people gain	(D)Rentiers gain

Question-10 Monetary policy is controlled by

(A) Central government	(B)State government
(C)Central bank	(D)Private sector

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Plus 2 Humanities

Tamil Nadu (English Medium)

Practice in Related Chapters
Nature and Scope of Economics
Basic Economic Problems
Theory of Consumer Behaviour
Demand and Supply
Equilibrium Price
Marginal Productivity Theory of Distribution
Production
Cost and Revenue
Market Structure and Planning
Fiscal Policy
Simple Theory of Income Determination
Monetary Policy