Tag: value, nature and functions of money

Questions Related to value, nature and functions of money

The transaction approach to the Quantity Theory of Money is given by _________.

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

  1. Frisch

  2. Fisher

  3. Finlay

  4. Fredrick

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Correct Option: B

As per Irving Fisher principle, if the quantity of money is reduced by one half  ________.

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

  1. the price level will also be reduced by one half

  2. value of money will be twice

  3. the price level will be double and the value of money will be one half

  4. the price level will also be reduced by one half and value of money will be double.

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Correct Option: D

The transaction approach to the "Quantity Theory of Money" is given by ____________.

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

  1. Frisch

  2. Fisher

  3. Finlay

  4. Fredrick

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Correct Option: B

Functions of money doesn't include:

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

  1. Medium of exchange

  2. Store of value

  3. Measure of value

  4. Employment generation

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Correct Option: D

Which of the following statements about Money is incorrect?

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

  1. There are many assets which carry the attribute of money.

  2. Money is what money does.

  3. Value of money remains constant at all periods of time

  4. None of the above

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Correct Option: C

Money 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. Standard of Deferred Payments

  4. All of the above

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Correct Option: D

Money represents _______________.

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

  1. Dollar

  2. Pounds Sterling

  3. Indian Rupee

  4. All of the above merely represent different units of money.

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Correct Option: D

In dynamic sense, money serves the following purposes:

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

  1. Gives direction to economic trends.

  2. Encourages specialisation and division of labour.

  3. Ensures transformation of savings into investments.

  4. All of the above

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Correct Option: D

When we say that Money serves as a common measure of value, we are considering the _________ aspect of Money.

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

  1. Static

  2. Dynamic

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: A

When we say that Money serves as a standard for deferred payments, we are considering the _________ aspect of Money.

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

  1. static

  2. dynamic

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: A