Economics Objective Questions, which are covered in this chapter, relate to the topic, Money. Economics Objective Questions contains 17 questions. Answers to Economics Objective Questions are available after clicking on the answer.
1.Broad Money refers to _______:
(a) M1
(b) M2
(c) M3
(d) M4
Answer
Answer: (c) M3
2.Which of the following measures of money supply is considered narrow concept of money supply?
(a) M1
(b) M2
(c) M3
(d) M4
Answer
Answer: (a) M1
3.Bills of exchange are sometimes known as:
(a) Near money
(b) Transferable assets
(c) Claims receivable
(d) Business obligations
Answer
Answer: (A) Near money
4.The issue of one rupee currency note in India is the liability of the:
(a) Issue Department of the RBI
(b) Government of India
(c) State Bank of India
(d) Banking Department of the RBI
Answer
Answer: (b) Government of India
Economics Objective Questions – Money
5.M2 is defined as:
(a) M1 + net time deposits
(b) M1 + total deposit with post office
(c) M1 + saving deposit with post office
(d) Currency plus demand deposits in banks
Answer
Answer: (c) M1 + saving deposit with post office
6.Which of the following will not come under narrow money?
(a) Currency in circulation
(b) Demand Deposit
(c) Time Deposit
(d) None of these
Answer
Answer: (c) Time Deposit
7.M3 is:
(a) Currency with public + demand deposits of the public
(b) M1 + M2
(c) M1 + Time deposits of the public with bank
(d) All of these
Answer
Answer: (c) M1 + Time deposits of the public with bank
8.M1 = _________ + Deposits with public
(a) Currency
(b) Term deposits
(c) Post office savings
(d) None of these.
Answer
Answer: (A) Currency
9.Which of the following is money proper?
(a) Bonds
(b) Government securities
(c) Time deposits
(d) Currency notes and demand deposits.
Answer
Answer: (d) Currency notes and demand deposits.
Economics Objective Questions – Money
10.Which of the following shows the meaning of the term M3?
(a) M1 + post office savings deposits.
(b) Currency + coins + demand deposits of banks
(c) M1 + Time Deposits of Banks.
(d) None of the above.
Answer
Answer: (c) M1 + Time Deposits of Banks.
11.Money in static sense, refers to:
(a) A store of Value
(b) Medium of Exchange
(c) Standard of deferred payments
(d) All of above.
Answer
Answer: (d) All of the above
12.The difference between narrow money and broad money is.
(a) Coins and currency
(b) Currency
(c) Saving deposits of Banks
(d) Time deposits with banks.
Answer
Answer:(d) Time deposits with banks.
13.Measurement of value of all goods and services refers to which of the following functions of money?
(a) Medium of Exchange
(b) Unit of account
(c) Standard of Deferred payment
(d) Store of value.
Answer
Answer: (b) Unit of account
Economics Objective Questions – Money
14.Money is most liquid of all assets because _______.
(a) It has portability
(b) It can be easily stored
(c) It is readily convertible into other assets
(d) It is generally acceptable
Answer
Answer: (c) It is readily convertible into other assets
15.Which of the following shows the meaning of M3?
(a) M1 + Post office saving deposits
(b) Currency + coins + demand deposits of banks
(c) M1 + time deposit of public with bank
(d) None of these.
Answer
Answer: (c) M1 + time deposit of public with bank
16.Which among the following is the static function of money?
(a) Store of value
(b) Medium of exchange
(c) Standard of deferred Payments
(d) All of the above.
Answer
Answer: (d) All of the above
17.Measurement of value of all goods and services refers to which of the following functions of money:
(a) Medium of exchange
(b) Unit of Account
(c) Standard of deferred Payments
(d) Store of value.
Answer
Answer: (b) Unit of Account