Tag: economics

Questions Related to economics

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

Show answer
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.

Show answer
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

Show answer
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)

Show answer
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)

Show answer
Correct Option: A

Money is a standard of deferred payments. This means that:

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

  1. Future transactions can be settled In terms of money

  2. Loans given and repayments thereof can be established in terms of money

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C

In 1979, As per RBI's New classification, M3 is known as ____________.

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

  1. Narrow Money

  2. Broad Money

  3. Near Money

  4. Pure Money

Show answer
Correct Option: B

Which of the following will not be included under Narrow Money?

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

  1. Currency in circulation

  2. Demand Deposits

  3. Time Deposits

  4. All of these

Show answer
Correct Option: C

As per RBI's new classification, which of the following measures of Money Stock includes Time Deposits with Banks?

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

  1. M1

  2. M2

  3. M3

  4. Both (b) and (c)

Show answer
Correct Option: D

The basic distinction between narrow and broad money is the __________.

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

  1. treatment of post office deposits

  2. treatment of time deposits of banks

  3. treatment of savings deposits of banks

  4. treatment of currency

Show answer
Correct Option: B
Explanation:

The basic distinction between the measurements of narrow and broad money is the treatment of time deposits of banks.
$\text{Broad money = Narrow money + Time deposits}$