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12th Standard Economics Monetary Economics English Medium Free Online Test One Mark Questions with Answer Key 2020 - 2021

12th Standard

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Economics

Time : 00:20:00 Hrs
Total Marks : 20

    Answer all the questions

    20 x 1 = 20
  1. MV stands for

    (a)

    demand for money

    (b)

    supply of legal tender money

    (c)

    Supply of bank money

    (d)

    Total supply of money

  2. __________inflation results in a serious depreciation of the value of money.

    (a)

    Creeping

    (b)

    Walking

    (c)

    running

    (d)

    Hyper

  3. Stagflation combines the rate of inflation with

    (a)

    Stagnation

    (b)

    employment

    (c)

    output

    (d)

    price

  4. During depression the level of economic activity becomes extremely

    (a)

    high

    (b)

    bad

    (c)

    low

    (d)

    good

  5. V in MV = PT equation stands for

    (a)

    Volume of trade

    (b)

    Velocity of circulation of money

    (c)

    Volume of transaction

    (d)

    Volume of bank and credit money

  6. Deflation means

    (a)

    Prices are rising

    (b)

    Prices are falling

    (c)

    Value of money is increasing

    (d)

    Prices are remaining the same

  7. Barter system was introduced by________

    (a)

    Mesopetamia tribes

    (b)

    Babylonian's

    (c)

    Both 'a' and 'b'

    (d)

    None of the above

  8. The symbol of India rupee came into use on________

    (a)

    15th July, 2010

    (b)

    16th July, 2010

    (c)

    15th June, 2010

    (d)

    16th June, 2010

  9. The general form of equation given by fisher is______

    (a)

    MV=PT

    (b)

    M = KPY

    (c)

    N= P/K

    (d)

    None of the above

  10. ''A state of abnormal increase in the quantity of purchasing power" was said by_____.

    (a)

    Coulbourn

    (b)

    Gregorye

    (c)

    Ricardo

    (d)

    Malthus

  11. ________system is managed by the Central Monetary Authority.

    (a)

    Plastic money

    (b)

    Metallic Standard

    (c)

    Silver standard

    (d)

    Paper currency

  12. _____ is a branch of economics that provides a framework for analyzing money.

    (a)

    Fiscal Economics

    (b)

    Micro Economics

    (c)

    Monetary Economics

    (d)

    International Economics

  13. _____ is a monetary arrangement in which a country’s Government allows conversion of its currency into fixed amount of silver.

    (a)

    The Gold Standard

    (b)

    The silver standard

    (c)

    The Metallic standard

    (d)

    None of the above

  14. What is the basis of the Credit System.?

    (a)

    State

    (b)

    Computer

    (c)

    PAYTM

    (d)

    Money

  15. ______ and _____ are known as broad money. 

    (a)

    M2 and M3

    (b)

    M3 and M4

    (c)

    M1 and M2

    (d)

    M1 and M4

  16. Expand the RDR

    (a)

    Renew deposit Ratio (RDR)

    (b)

    Reserve development Ratio (RDR)

    (c)

    Rational deposit Ratio (RDR)

    (d)

    Reserve deposit Ratio (RDR)

  17. Who published the book, ‘The Purchasing Power of Money” in 1911

    (a)

    Arthur

    (b)

    Hicks

    (c)

    Irving Fisher

    (d)

    Pigou

  18. In Keynes’ extended equation: n = p (k + rk') or p = n/(k + rk'), which one is wrongly denoted?

    (a)

    n = total money supply

    (b)

    p = price level of consumer goods

    (c)

    k = peoples' desire to hold money in hand (in terms of consumer goods) in the total income of them

    (d)

    r = community’s total money deposit in banks, in terms of consumers goods

  19. _____ can be possible When prices rise moderately and the annual inflation rate is a single digit ( 3% - 9%).

    (a)

    Walking Inflation

    (b)

    Running Inflation

    (c)

    Creeping Inflation

    (d)

    Hyper Inflation

  20. Find which is not a an example of Fixed income Groups?

    (a)

    wages

    (b)

    salary

    (c)

    pension

    (d)

    organization

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