Chapter 5: Monetary EconomicsMarch 11, 2024 Maven Leave a Comment Welcome to the Chapter 5: Monetary Economics Quiz! This quiz is based on the book back questions. Name Email 1. _________ inflation results in a serious depreciation of the value of money. Creeping Walking running Hyper None 2. The basic distinction between M1 and M2 is with regard to post office total deposits saving deposits with post office savings bank terms deposits of banks currency None 3. Paper currency system is managed by the Central Monetary authority State Government Central Government Banks None 4. During inflation, who are the gainers? Debtors Creditors Wage and salary earners Government None 5. MV stands for demand for money supply of legal tender money Supply of bank money Total supply of money None 6. Irving Fisher’s Quantity Theory of Money was popularized in 1908 1910 1911 1914 None 7. The RBI Headquarters is located at Delhi Chennai Mumbai Bengaluru None 8. _________ 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 None 9. Money is acceptable only when it has intrinsic value constant in purchasing power the most liquid of all assets needed for allocation of resources None 10. Inflation means Prices are rising Prices are falling Value of money is increasing Prices are remaining the same None 11. V in MV = PT equation stands for Volume of trade Velocity of circulation of money Volume of transaction Volume of bank and credit money None 12. When prices rise slowly, we call it galloping inflation mild inflation hyper inflation deflation None 13. __________ inflation is in no way dangerous to the economy. walking running creeping galloping None 14. The study of alternating fluctuations in business activity is referred to in Economics as Boom Recession Recovery Trade cycle None 15. ___________ is a decrease in the rate of inflation. Disinflation Deflation Stagflation Depression None 16. During depression the level of economic activity becomes extremely high bad low good None 17. Stagflation combines the rate of inflation with Stagnation employment output price None 18. Debit card is an example of currency paper currency plastic money money None 19. 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 None 20. “Money can be anything that is generally acceptable as a means of exchange and that thesame time acts as a measure and a store of value”, This definition was given by Crowther A.C.Pigou F.A.Walker Francis Bacon None Time's upRelated Posts:Chapter 11: Economics of Development and PlanningChapter 10: Environmental EconomicsChapter 9: Fiscal EconomicsChapter 7: International Economics
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