Theory of money

The value of money in Fisher’s equation is determined by

• Demand for money

• Supply of money

• Demand and supply of money

• None of the above

According to Cambridge equation, the value of money depends upon

• Demand for money

• Supply of money

• Demand for goods and services

• None of the above

Value of money is

• Directly related to the price level

• Inversely related to the price level

• Proportionately related to the price level

• All the above

If the quantity of money increases 100%, other thing remaining constant, value of money changes by

• Increases by 100%

• Decreases by 100%

• Decreases by 200%

• Does not change.

Equation of exchange is associated with

• Pigou

• J.B.Say

• Marshall

• Irving Fisher

In the Fisher’s extended equation of exchange M’V’ represents

• Credit money

• Primary money

• Both primary and credit money

• General price level.

In fisher’s transaction velocity model, which one of the following is not an assumption

• Velocity of circulation of money is constant

• The volume of transaction is constant

• Full employment

• P is considered as an active factor.

The cash balance equation M=KPY was given by

• Keynes

• Pigou

• Robertson

• Marshall

According to Cambridge equation, the value of money depends upon

• Demand for money

• Supply of money

• Demand for goods and services

• None of the above

Robertson’s version of the Cambridge equation is

• P=M/KT

• P=KR/M

• MK=PT

• M=Kp/Y