Monetary Economics Quiz 2024 17 March 2025 (10 Marks)

When the Price level rises the Value of Money:

• Also Rise

• Falls

• Is equal to price level

• Does not change

Which is the most liquid measure of the money supply?

• M1

• M2

• M3

• M4

Which is the least liquid measure of money supply?

• M1

• M2

• M3

• M4

If the supply of money in the economy is less than its requirements velocity of money will be?

• More

• Less

• No effect

• Equal

If there is high tendency of people to purchase on cash the velocity of money will ?

• Be less

• Be more

• Be equal

• no effect

The Primary source of Money supply in all countries is?

• The Reserve Bank of India

• The Central Bank of the Country

• The Bank of England

• The Federal Reserve

Who is in charge of making Rupee 1 notes & coins in India?

• RBI

• Commercial Banks

• Government

• Ministry of Finance

The most important feature of money is

• General acceptability

• Convertibility into gold

• Store of value

• Medium of exchange

According to Keynes,motives for holding money are

• Two

• Three

• Four

• Five

Value of money and supply of money are related

• None of the above

• Directly

• Inversely

• Are not related