ME Quiz 1

Exchange of goods and services is a _____ Function of money

• Secondary

• Contigent

• Primary

• None of the above

According to Fisher's Quantity Theory of money , Money is used only for the purpose of______

• Precautionary Motive

• Transaction Motive

• Speculative Motive

• None of the above

Value of Money =

• 1/P

• MS + MV / T

• KPY

• None of the above

According to Fisher's Approach , increase in money supply will result as

• Decrease in Price levels

• Decrease in Demand of commodities

• Decrease in Value of money

• None of the above

Among the given assets, which has the highest Liquidity?

• Land

• Gold

• Stock

• Furniture

The basis of Credit System is_____

• Demand

• Price

• Supply

• Money

Fisher's Theory assumes that, Price is a______ factor

• Constant

• Dynamic

• Passive

• Important

Identify the Fisher's equation

• Md= KPY

• MV=PT

• P=MD/KY

• None of the above

According to Cambridge Cash Balance Approach , increase in money supply will result as

• Shifting equilibrium on lower position

• shifting equilibrium on higher position

• decrease in income level

• decrease in price level

Which one is an Optional Money?

• Metallic coins

• Paper currency

• Cheque

• none of the above