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Published on: 06/11/2020
12th Standard Economics Monetary Economics English Medium Free Online Test One Mark Questions 2020 - 2021
Download Tamil Nadu 12th Standard Economics question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
Questions + Answers key
Take MCQ Economics Test
1.
Match the correct codes
| 1 | It is the ratio of money held by the public in currency to that they hold in bank deposits. |
i | CRR |
| 2 | Reserve Money consists of two things (a) vault cash in banks and (b) deposits of commercial banks with RBI |
ii | SLR |
| 3 | It is the fraction of the deposits the banks must keep with RBI | iii | RDR |
| 4 | It is the fraction of the total demand and time deposits of the commercial banks is the form of specified liquid assests |
iv | CDR |
(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)
(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)
(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)
(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)
2.
Which of the following are costs of inflation?
I. Inflation weakens the creation of credit and capital markets.
II. Inflation distorts business behavior, especially investment behavior.
III. Inflation increases the prices of foreign goods relative to domestic goods.
IV. Inflation imposes a tax on the holders of money.
I and II only
III and IV only
I, II and IV only
I, II and III only
3.
Inflation is measured by the
I. consumer price index (CPI).
II. GDP deflator.
III. current account.
IV. depreciation.
I and II only.
I and III only.
III and IV only.
I, II and III.
4.
Assertion: Fisher extended his original equation of exchange to include bank deposits M1 and its velocity V1.
Reason: In a modern economy, bank’s demand deposits or credit money and its velocity play a vital part in business.
Both A and R are true and R is the correct explanation of A
Both A and R are true but R is not the correct explanation of A
A is true but R is false
A is false but R is true
5.
In the Cambridge equation of M = kPY, the value of k is:
M/V
1/V
V in Fisher’s equation
None of these
6.
Stagflation is a combination of stagnant economic growth, high unemployment and high inflation ______?
high inflation
low inflation
no inflation
disinflation
7.
When prices rise rapidly like the running of a horse at a rate of speed of _____ per annum, it is called running inflation.
1% - 2 %
100% - 200 %
10% - 20%
None of the above
8.
Who said the following statement? “A state of abnormal increase in the quantity of purchasing power"?
Fisher
Gregorye
Marshall
Keynes
9.
According to Marshall’s equation, the value of money is influenced not only by changes in M, but also by changes in
K
P
Kl
Pl
10.
What is SLR?
It is the fraction of the total demand and time deposits of the commercial banks is the form of specified liquid assets
Reserve Money consists of two things (a) vault cash in banks and (b) deposits of commercial banks with RBI.
It is the fraction of the deposits the banks must keep with RBI.
It is the ratio of money held by the public in currency to that they hold in bank deposits
11.
In India, ______ are issued by the Reserve Bank of India (RBI) and ______ are issued by the Ministry of Finance, Government of India (GOI).
coins and currency notes
currency notes and coins
currency notes and pass books
none of the above
12.
Gold Standard is a system in which the value of the monetary unit or the standard currency is _____ linked with gold.
directly
indirectly
positively
negatively
13.
Irving Fisher's _______ was published in 1911.
Quantity theory of money
Liquidity preference
Quality theory of money
Both 'b' and 'c'
14.
"The purchasing power of money" was a book published by________in 1911
J.M. Keynes
Irving Fisher
Adam smith
Ricardo
15.
'Inflation is taxation without legislation' was said by______
Rudi Dorbush
Adam smith
Milton Friedman
Alfred Marshall
16.
Fisher’s Quantity Theory of money is based on the essential function of money as
measure of value
store of value
medium of exchange
standard of deferred payment
17.
The study of alternating fluctuations in business activity is referred to in Economics as
Boom
Recession
Recovery
Trade cycle
18.
_________is a decrease in the rate of inflation.
Disinflation
Deflation
Stagflation
Depression
19.
___________inflation occurs when general prices of commodities increases due to increase in production costs such as wages and raw materials.
Cost-push
demand pull
running
galloping
20.
The RBI Headquarters is located at
Delhi
Chennai
Mumbai
Bengaluru
1.
(c)
(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)
2.
(c)
I, II and IV only
3.
(a)
I and II only.
4.
(a)
Both A and R are true and R is the correct explanation of A
5.
(b)
1/V
6.
(a)
high inflation
7.
(c)
10% - 20%
8.
(b)
Gregorye
9.
(b)
P
10.
(a)
It is the fraction of the total demand and time deposits of the commercial banks is the form of specified liquid assets
11.
(b)
currency notes and coins
12.
(a)
directly
13.
(a)
Quantity theory of money
14.
(b)
Irving Fisher
15.
(c)
Milton Friedman
16.
(c)
medium of exchange
17.
(d)
Trade cycle
18.
(a)
Disinflation
19.
(a)
Cost-push
20.
(c)
Mumbai
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Tamilnadu Stateboard 12th Standard Subjects
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Physics
Biology
Computer Science
Business Maths and Statistics
Economics
Commerce
Accountancy
History
Computer Applications
Biology
Computer Technology
Computer Applications
Computer Science
Business Maths and Statistics
Commerce
Economics
Maths
Chemistry
Physics
Computer Technology
History
Accountancy
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