Money Banking and International Trade Test 2 Mcqs Preparation Online

1. Cost-push inflation is caused by?

A. In-crease in investment

B. Increase in the prices of inputs

C. Increase in the quantity of money

D. Creation of credit money

2. Identify Pigou's cash balances equation?

A. M = Ky + K'A

B. M = KR/P

C. M = PKT

D. M = KPO

3. During which decade of the nineteenth century did most European countries adopt the gold standard?

A. Seventies

B. Nineties

C. Eighties

D. Sixties

4. In the Fisher's equation of exchange MV = PT, what does T denote?

A. Trend value of general price level

B. Total money wealth

C. Period of time

D. Volume of trade

5. Who is generally regarded as the founder of the Modern Quantity Theory of Money?

A. Don Patinkin

B. M.L.Bursten

C. Milton Friedman

D. J.M.Keynes

6. Which of the following according to Milton Friedman is not a key determinant of the demand for money?

A. Precautionary motive

B. Physical non-human capital goods and human capital or wealth

C. Aggregate wealth

D. Relative rates of return obtainable on different forms of assets

7. Who introduced the concept of the real balance effect?

A. A.C.Pigou

B. Milton Friedman

C. J.M.Keynes

D. Alfred Marshall

8. When did the UK finally abandon the gold standard?

A. 1925

B. 1929

C. 1931

D. 1936

9. The Quantity Theory of Money establishes the relationship between quantity of money in an economy and the level of?

A. Employment

B. National income

C. Prices

D. Savings

10. Identify the country which was the first to adopt the gold standard?

A. USA

B. France

C. UK

D. Germany

Money Banking and International Trade Test 2 Mcqs Preparation Online

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