Tag: theories of distribution

Questions Related to theories of distribution

Which of the following is not a necessary characteristic of money?

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. It is a unit of account

  2. It is a store of value

  3. It is of intrinsic value

  4. It is generally acceptable

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Correct Option: C

A vital function of money is its ability to provide a standard for __________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. difference in consumer's goods

  2. marginal utility

  3. deferred payments

  4. consumer's preference

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Correct Option: C

Money is said to be neutral when ______________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. changes in money supply do not have any effect on real sector

  2. changes in money supply leads to increase in national income

  3. changes in money supply lead to decrease in national income

  4. none of the above

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Correct Option: A

Which of the following is the important function of money?

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. Money must be legal lender

  2. Money must facilitate exchange if it is to fulfill its purpose

  3. A government must exist for money to exist

  4. None of the above

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Correct Option: B