The RBI Headquarters is located at

(a)

Delhi

(b)

Chennai

(c)

Mumbai

(d)

Bengaluru

Money is _____.

(a)

acceptable only when it has intrinsic value

(b)

constant in purchasing power

(c)

the most liquid of all assets

(d)

needed for allocation of resources

Paper currency system is managed by the______.

(a)

Central Monetary authority

(b)

State Government

(c)

Central Government

(d)

Banks

The basic distinction between M₁ and M₂ is with regard to

(a)

post office total deposits

(b)

saving deposits with post office savings bank

(c)

Terms deposits of banks

(d)

currency

Irving Fisher’s Quantity Theory of Money was popularized in

(a)

1908

(b)

1910

(c)

1911

(d)

1914

MV stands for

(a)

demand for money

(b)

supply of legal tender money

(c)

Supply of bank money

(d)

Total supply of money

Inflation means

(a)

Prices are rising

(b)

Prices are falling

(c)

Value of money is increasing

(d)

Prices are remaining the same

__________inflation results in a serious depreciation of the value of money.

(a)

Creeping

(b)

Walking

(c)

running

(d)

Hyper

___________inflation occurs when general prices of commodities increases due to increase in production costs such as wages and raw materials.

(a)

Cost-push

(b)

demand pull

(c)

running

(d)

galloping

During inflation, who are the gainers?

(a)

Debtors

(b)

Creditors

(c)

Wage and salary earners

(d)

Government

_________is a decrease in the rate of inflation.

(a)

Disinflation

(b)

Deflation

(c)

Stagflation

(d)

Depression

Stagflation combines the rate of inflation with

(a)

Stagnation

(b)

employment

(c)

output

(d)

price

The study of alternating fluctuations in business activity is referred to in Economics as

(a)

Boom

(b)

Recession

(c)

Recovery

(d)

Trade cycle

During depression the level of economic activity becomes extremely

(a)

high

(b)

bad

(c)

low

(d)

good

“Money can be anything that is generally acceptable as a means of exchange and that thesame time acts as a measure and a store of value”, This definition was given by

(a)

Crowther

(b)

A.C.Pigou

(c)

F.A.Walker

(d)

Francis Bacon

Debit card is an example of

(a)

currency

(b)

paper currency

(c)

plastic money

(d)

money

Fisher’s Quantity Theory of money is based on the essential function of money as

(a)

measure of value

(b)

store of value

(c)

medium of exchange

(d)

standard of deferred payment

V in MV = PT equation stands for

(a)

Volume of trade

(b)

Velocity of circulation of money

(c)

Volume of transaction

(d)

Volume of bank and credit money

When prices rise slowly, we call it

(a)

galloping inflation

(b)

mild inflation

(c)

hyper inflation

(d)

deflation

_____inflation is in no way dangerous to the economy.

(a)

walking

(b)

running

(c)

creeping

(d)

galloping