Money and Value of Money Test 02 Mcqs Preparation Online

1. Paper money came into use?

A. 1000 years ago

B. 100 years ago

C. 2000 years ago

D. 200 years ago

2. Which of the following increases money supply in the country?

A. Decrease in taxes

B. Sale of bonds by State Bank

C. Increase in discount rate

D. Purchase of bonds by State Bank

3. The govt. can control inflation by?

A. Decreasing taxes

B. Increasing money supply

C. Increasing demand for goods

D. Increasing supply of goods

4. Commercial banks create?

A. Legal money

B. Credit money

C. Do not create money

D. Token money

5. Government of Pakistan issues currency on the basis of?

A. Availability of gold in the country

B. Demand for money in the country

C. Tax collection

D. Availability of dollars in the country

6. It is the medium of exchange?

A. Black money

B. Foreign exchange

C. Near money

D. Currency

7. The most important feature of money?

A. Medium of exchange

B. Convertibility into gold

C. General acceptability

D. Store of value

8. It can change money supply?

A. National Assembly

B. Government

C. State Bank

D. Supreme Court

9. Cheque is?

A. Not money

B. Legal money

C. Paper money

D. Credit money

10. Quantity of money has relation with value of money?

A. No relation

B. Indirect

C. Direct

D. Inverse

Money and Value of Money Test 02 Mcqs Preparation Online

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