Tag: functions of money

Questions Related to functions of money

The liquidity approach emphasizes the function of money as a ________.

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

  1. standard of deferred payment of money

  2. store of money

  3. income from money

  4. (A) and (C)

Show answer
Correct Option: B

Measure of value of all goods and services refers __________ from following function of money.

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

  1. medium of exchange

  2. unit of account

  3. standard of deferred payments

  4. store of value

Show answer
Correct Option: B

Money means anything that serves as ______________.

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

  1. medium of Exchange

  2. common measure of value

  3. store of Value

  4. all of the above

Show answer
Correct Option: D

Narrow money refers to ________.

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

  1. $M _1$

  2. $M _2$

  3. $M _3$

  4. $M _4$

Show answer
Correct Option: A
Explanation:

As per the revised definition of M1 as a measure of money stock in India, it can be defined as currency plus demand deposits with commercial banks plus other deposits with RBI.
Since, this definition of money supply is narrow, it is termed as narrow money.

 Money is ___________.

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

  1. neutral for production

  2. helpful for production

  3. harmful for production

  4. distorts production

Show answer
Correct Option: B

Which of the following is not a function of money?

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

  1. It is a medium of exchange

  2. It has general acceptability

  3. It is a standard measure of value

  4. It is hedge against inflation

Show answer
Correct Option: D

The chief function of money is that of __________.

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

  1. a medium of exchange

  2. a reserve base for credit creation

  3. providing liquidity

  4. none of the above

Show answer
Correct Option: A

Which of the following is not a function of money?

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

  1. Medium of exchange

  2. Unit of account

  3. Standard of deferred payment

  4. Store of metal

Show answer
Correct Option: D

Money is most liquid of all the assets because ___________.

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

  1. it is readily convertible into other assets

  2. it can be easily stored

  3. it gives income to the holder

  4. it has no carrying cost

Show answer
Correct Option: A

Which of the following are the functions of money?
(i) Medium of exchange
(ii) Unit of account
(iii) Store of value
(iv) Standard of deferred payments.

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

  1. (i) and (ii) only

  2. (i), (ii) and (iii) only

  3. (ii) and (iv) only

  4. (i), (ii), (iii) and (iv)

Show answer
Correct Option: D