11th Principles of Economics MCQS
This paper notes which can be converted into gold, silver or foreign exchange are called
Inconvertible paper money
Convertible paper money
Standard money
Unlimited legal tender money
Purchasing power of money is inverse of level of prices. So study of purchasing power of money is identical with the study of level of prices. These are the words of
Prof Pigou
Prof Crowther
Prof Keynes
Prof Irving Fisher
One of the following is not the monetary measure to control inflation
Increase in taxes
Increase in the ratio of reserve capital of the banks
Increase in bank rate
Open market operation
Which one of the following was the difficulty of barter system
Lack of double coincidence of wants
difference of occupations
Abundance of goods
Difference of language
The money in which payment can be made only to certain extent is called
Metallic money
Unlimited legal tender money
Limited legal tender money
Paper money
Quantity theory of money was criticised by
Prof. Keynes
i and ii both
Prof Pigou
Prof Marshall
Inflation is created
When demand for goods becomes equal to their supply
When demand for goods is less than their supply
When demand and supply of goods do not change
When demand for goods is more than their supply
Which economist said that the term demand for money should be used instead of circulation of money
Prof Keynes
Prof Fisher
Prof Marshall
Prof Crowther
Quantity theory of money failed during world economic depression
In 1935
In 1925
In 1920
In 1929
What effects are expected on the purchasing power of money during deflation
Remains constant
Increases
Decreases
2nd and 3rd
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