Economics Objective Questions – Chapter 8 – Money

Economics Objective Questions, which are covered in this chapter, relate to the topic, Money. Economics Objective Questions contains 10 questions. Answers to Economics Objective Questions are available at the end of the last question.




1. Broad Money refers to _______:

(a)    M1

(b)    M2

(c)     M3

(d)    M4

2. Which of the following measures of money supply is considered narrow concept of money supply?

(a)    M1

(b)    M2

(c)     M3

(d)    M4

3. Bills of exchange are sometimes known as:

(a)    Near money

(b)    Transferable assets

(c)     Claims receivable

(d)    Business obligations

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

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




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

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

8. M1 = _________ + Deposits with public

(a)    Currency

(b)    Term deposits

(c)     Post office savings

(d)    None of these.

9. Which of the following is money proper?

(a)    Bonds

(b)    Government securities

(c)     Time deposits

(d)    Currency notes and demand deposits.

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.

 

ANSWERS

1. (c) M3

2. (a) M1

3. (a) Near money

4. (b) Government of India

5. (c) M1 + saving deposit with post office

6. (c) Time Deposit

7. (c) M1 + Time deposits of the public with bank

8. (a) Currency

9. (d) Currency notes and demand deposits.

10 (c) M1 + Time Deposits of Banks.

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