Monetary Economics Additional Practice Test

12th Standard Economics — Monetary Economics: Additional Online Practice Test

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Which economist defined money with the simple phrase, "Money is, what money does"?

A.Crowther B.Walker C.Irving Fisher D.J.M. Keynes

According to the historical evolution of trade, which ancient tribe first introduced the barter system around 6000 BC?

A.Phoenicians B.Babylonians C.Mesopotamian tribes D.Romans

Under the metallic standard, what is the relationship between the face value and the intrinsic metal value of standard coins?

A.Face value is less than intrinsic value B.Face value is equal to intrinsic value C.Face value is greater than intrinsic value D.There is no relationship between the two values

Which of the following is classified as a primary function of money?

A.Standard of deferred payments B.Store of value C.Measure of value D.Transfer of purchasing power

When money is used to transfer capital from less productive to more productive uses, which function is it performing?

A.Primary function B.Secondary function C.Contingent function D.Static function

In the estimation of money supply by the Reserve Bank of India, what constitutes M3?

A.M1 + Savings deposits with post office savings banks B.M2 + Time deposits of all commercial and cooperative banks C.M1 + Time deposits of all commercial and cooperative banks D.M3 + Total deposits with post offices

What does the Cash Reserve Ratio (CRR) refer to in the context of money supply determinants?

A.The ratio of money held by the public in currency to bank deposits B.The fraction of deposits banks must keep with the RBI C.The fraction of deposits banks must keep in the form of liquid assets D.The ratio of vault cash to deposits of commercial banks

The unique Indian Rupee symbol, selected by the Union Cabinet on July 15, 2010, is an amalgamation of which scripts?

A.Devanagri 'Ra' and Roman 'R' without the stem B.Sanskrit 'Ra' and Greek 'R' with the stem C.Devanagri 'Ra' and Greek 'R' without the stem D.Sanskrit 'Ra' and Roman 'R' with the stem

Which of the following is Marshall's algebraic equation representing the Cambridge Cash Balances Approach?

A.MV = PT B.M = KPY C.n = pk D.p = n / k

Q10

In Keynes's cash balance equation n = pk, what does the variable 'k' represent?

A.The total supply of money B.The general price level of consumer goods C.The total quantity of consumption units people keep in cash D.The cash reserve ratio of banks

Q11

When the annual rate of inflation rises moderately into a single digit of 3% to 9%, it is classified as which type of inflation?

A.Creeping inflation B.Running inflation C.Walking inflation D.Galloping inflation

Q12

Which type of inflation is caused by the hoarding of goods and black marketing, leading to a sudden fall in supply?

A.Credit inflation B.Profit-induced inflation C.Scarcity-induced inflation D.Tax-induced inflation

Q13

Who among the following benefits or gains during a period of high inflation?

A.Creditors B.Debtors C.Fixed-income groups D.Long-term bond investors

Q14

Which of the following is a qualitative or selective method used by central banks to control credit?

A.Bank Rate Policy B.Open Market Operations C.Variable Reserve Ratio D.Moral Suasion

Q15

In the study of trade cycles, what is the extreme lowest point of a depression phase called?

A.Boom B.Recession C.Trough D.Recovery

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About this Monetary Economics test

This free online practice test covers Monetary Economics from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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