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Question-1
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-2
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-3
M3 and M4 measure of money supply is
(A)
Narrow
(B)
Broad
(C)
Liquid
(D)
Least liquid
Question-4
Under the pure gold standard
(A)
Circulating notes are fully backed by gold
(B)
The authorities can easily manipulate the money supply
(C)
Price stability is difficult to achieve
(D)
The power of monetary policy is unlimited
Question-5
Barter works best
(A)
In the absence of a double coincidence of wants
(B)
When many different product are available in the economy when money is relatively available to establish relative prices
(C)
When money is relatively available to establish relative prices
(D)
When each trader has what the other wants and wants what the other has
Question-6
What are the modern forms of money?
(A)
Currency
(B)
Plastic money
(C)
Demand deposits
(D)
All the above
Question-7
Which of the following is not a function of money?
(A)
Unit of account
(B)
Medium of exchange
(C)
Store of value
(D)
Intermediation
Question-8
Currency with the public is known as
(A)
M1
(B)
M2
(C)
M3
(D)
M4
Question-9
“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-10
Which of the following is not true of inflation?
(A)
It reduces purchasing power of money
(B)
It favours lenders and penalizes borrowers
(C)
It redistributes income in favour of variable income earners
(D)
It decreases social welfare
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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
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