Money and Value of Money Test 04 Mcqs Preparation Online

1. Cross cheque means?

A. (b) and (c) of above

B. It has been cancelled

C. It has two lines drawn in left upper corner

D. Cash cannot be directly drawn from the bank

2. Cross cheque has a cross sign (X) in the?

A. Right side lower corner

B. Right side upper corner

C. Left side upper corner

D. It does not have cross sign (X)

3. In the equation MV = PY, M represents?

A. Money demand

B. Minimum output

C. Maximum output

D. Money supply

4. In the equation MV = PY, V represents?

A. Velocity of circulation of money

B. Value of money

C. Variation of nation income

D. All of the above

5. According to Keynes, motives for holding money are?

A. Five

B. Three

C. Two

D. Four

6. It is true to say about kinds of inflation?

A. None of the above

B. Demand pull and cost push industry

C. Demand pull and cost push inflation

D. Demand pull and income pull inflation

7. Speculative demand for money depends upon?

A. Investment

B. Central bank

C. Income

D. Rate of interest

8. Liquidity of a monetary asset means?

A. The monetary asset has lost it value

B. Ready acceptability of monetary asset

C. Velocity of circulation of money

D. Easy availability of one

9. If money supply in a country decreases?

A. Rate of interest falls

B. (b) and (c) of above

C. Prices will rise

D. Prices will fall

10. Quantity Theory of Money explains that?

A. Supply of money depends upon quantity of money

B. Value of money depends upon quantity of money

C. Rate of interest depends upon quantity of money

D. Quantity of investment depends upon quantity of money

Money and Value of Money Test 04 Mcqs Preparation Online

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