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Monetary Economics 1 Mark Book Back Question Paper With Answer Ke

12th Standard

    Reg.No. :
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Economics

Time : 00:20:00 Hrs
Total Marks : 20

     Multiple Choice Question

    20 x 1 = 20
  1. The RBI Headquarters is located at

    (a)

    Delhi

    (b)

    Chennai

    (c)

    Mumbai

    (d)

    Bengaluru

  2. 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

  3. Paper currency system is managed by the______.

    (a)

    Central Monetary authority

    (b)

    State Government

    (c)

    Central Government

    (d)

    Banks

  4. 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

  5. Irving Fisher’s Quantity Theory of Money was popularized in

    (a)

    1908

    (b)

    1910

    (c)

    1911

    (d)

    1914

  6. MV stands for

    (a)

    demand for money

    (b)

    supply of legal tender money

    (c)

    Supply of bank money

    (d)

    Total supply of money

  7. Inflation means

    (a)

    Prices are rising

    (b)

    Prices are falling

    (c)

    Value of money is increasing

    (d)

    Prices are remaining the same

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

    (a)

    Creeping

    (b)

    Walking

    (c)

    running

    (d)

    Hyper

  9. ___________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

  10. During inflation, who are the gainers?

    (a)

    Debtors

    (b)

    Creditors

    (c)

    Wage and salary earners

    (d)

    Government

  11. _________is a decrease in the rate of inflation.

    (a)

    Disinflation

    (b)

    Deflation

    (c)

    Stagflation

    (d)

    Depression

  12. Stagflation combines the rate of inflation with

    (a)

    Stagnation

    (b)

    employment

    (c)

    output

    (d)

    price

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

    (a)

    Boom

    (b)

    Recession

    (c)

    Recovery

    (d)

    Trade cycle

  14. During depression the level of economic activity becomes extremely

    (a)

    high

    (b)

    bad

    (c)

    low

    (d)

    good

  15. “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

  16. Debit card is an example of

    (a)

    currency

    (b)

    paper currency

    (c)

    plastic money

    (d)

    money

  17. 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

  18. 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

  19. When prices rise slowly, we call it

    (a)

    galloping inflation

    (b)

    mild inflation

    (c)

    hyper inflation

    (d)

    deflation

  20. _____inflation is in no way dangerous to the economy.

    (a)

    walking

    (b)

    running

    (c)

    creeping

    (d)

    galloping

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