MCQOPTIONS
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MCQOPTIONS
This section includes 170 Mcqs, each offering curated multiple-choice questions to sharpen your Economics (CBCS) knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
The cash balance equation = was given by |
| A. | Keynes |
| B. | Pigou |
| C. | Robertson |
| D. | Marshall |
| Answer» E. | |
| 152. |
Fisher s equation of exchange considers money as |
| A. | A medium of exchange |
| B. | A store of value |
| C. | Measures of value |
| D. | All of the above |
| Answer» B. A store of value | |
| 153. |
The quantity demanded of money rises |
| A. | As the interest rises |
| B. | As the interest falls |
| C. | As the supply of money falls |
| D. | As the numberof banks rises |
| Answer» C. As the supply of money falls | |
| 154. |
In Fisher s transaction velocity model, which one of the following is not an assumption |
| A. | Velocity of circulation of money is constant |
| B. | The volume of transaction is constant |
| C. | Full employment |
| D. | P is considered as an active factor |
| Answer» E. | |
| 155. |
Equation of exchange is converted into the quantity theory of money by assuming the following variables as constants |
| A. | V and T |
| B. | M and V |
| C. | M and P |
| D. | V and P |
| Answer» B. M and V | |
| 156. |
The quantity theory of money was restated by |
| A. | Alfred Marshall |
| B. | Milton Friedman |
| C. | Irving Fisher |
| D. | JM. Keynes |
| Answer» C. Irving Fisher | |
| 157. |
What is Currency Deposit Ratio (CDR)? |
| A. | Ratio of money held by the public in currency to that of money held in bank deposits |
| B. | Ratio of money held by the public in bank deposits to that of money held by public in currency |
| C. | Ratio of money held in demand drafts to that of money held in treasury bonds |
| D. | None of the above |
| Answer» B. Ratio of money held by the public in bank deposits to that of money held by public in currency | |
| 158. |
In which way recessions affect the real level ofGDP? |
| A. | Recessions cause only temporary reduction in real level of GDP |
| B. | Recessions cause large, permanent reductions in the real level of GDP |
| C. | Recessions cause both temporary and permanent declines in real level of GDP |
| D. | None of the above |
| Answer» D. None of the above | |
| 159. |
Who officially determines whether the economy is in recession or expansion? |
| A. | The President of the United States |
| B. | The U.S Congress |
| C. | The Federal Reserve Board of Governors |
| D. | The National Bureau of Economic Research |
| Answer» E. | |
| 160. |
Assuming that 3 units of capital are required to produce 1 unit of output, then capitaloutput ratio would be |
| A. | 3 2 |
| B. | 3 1 |
| C. | 3 3 |
| D. | 3 4 |
| Answer» C. 3 3 | |
| 161. |
Legal money is called so because |
| A. | The buyer must pay in that money |
| B. | Can be converted into gold |
| C. | Sellers do not accept any other money |
| D. | It is official medium of exchange |
| Answer» E. | |
| 162. |
The technique of production in which the amount of capital used per unit of labour is larger than that of labour is known as |
| A. | Capital-intensive technique |
| B. | Modern technique |
| C. | Scientific technique |
| D. | All of the above |
| Answer» B. Modern technique | |
| 163. |
The most important feature of money is |
| A. | General acceptability |
| B. | Convertibility into gold |
| C. | Store of value |
| D. | Medium of exchange |
| Answer» B. Convertibility into gold | |
| 164. |
In the equation = , |
| A. | Money supply |
| B. | Money demand |
| C. | Maximum output |
| D. | Minimum output |
| Answer» B. Money demand | |
| 165. |
According to Keynes, motives for holding money are |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Five |
| Answer» C. Four | |
| 166. |
Under normal circumstances, the velocity of circulation of money in a country is |
| A. | 100 % |
| B. | Negative |
| C. | Less than 10 |
| D. | Zero |
| Answer» D. Zero | |
| 167. |
Value of money means |
| A. | Gold purchased by money |
| B. | General Purchasing power of money |
| C. | Importance of money |
| D. | Demand for money |
| Answer» C. Importance of money | |
| 168. |
Paper money is called fiat money because |
| A. | It is issued with authority of government |
| B. | It is convertible into gold |
| C. | It can be easily printed |
| D. | It is light weight |
| Answer» B. It is convertible into gold | |
| 169. |
If the quantity of money increases 100%, other things remaining constant, value of money changes by |
| A. | Increases by 100 % |
| B. | Decreases by 100 % |
| C. | Decreases by 200% |
| D. | Does not change |
| Answer» C. Decreases by 200% | |
| 170. |
Value of money and supply of money are related |
| A. | Inversely |
| B. | Directly |
| C. | Are not related |
| D. | None of the above |
| Answer» B. Directly | |