Money and Value of Money Test 8 Mcqs Online Preparation

1. Value of money means?

A. Importance of money

B. Gold purchased by money

C. Demand for money

D. General purchasing power of money

2. According to Keynes people demand money for purposes (motives)?

A. 1

B. 2

C. 4

D. 3

3. Inflation?

A. Affects only industrial sector

B. Cakes distribution of income equal

C. Has no effect on distribution of income

D. Makes distribution of income unequal

4. For the economy, prices are beneficial?

A. Falling slowly

B. Rising fast

C. Rising slowly

D. Falling fast

5. Which people are most likely to gain during inflation?

A. Those who are repaying borrowed money

B. Those living on pension

C. Those living on their savings

D. Those who have lent money

6. If we put this letter in the blank space, we get quantity theory of money PY = M?

A. V

B. T

C. S

D. A

7. Value of money and supply of money are related?

A. Govt. law

B. Inversely

C. Directly

D. Are not related

8. If quantity of money increases 100%, other things remaining constant, value of money changes by?

A. Decreases by 200%

B. Does not change

C. Decreases by 100%

D. Increases by 100%

9. They are not affected badly by rising prices?

A. Salaried persons

B. Importers

C. Debtors

D. Businessmen

10. It is assumption of quantity theory of money?

A. Velocity of circulation of money constant

B. (a) and (b) of the above

C. Govt. imposes new taxes

D. Quantity of traded goods increases

Money and Value of Money Test 8 Mcqs Online Preparation

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