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MONEY AND SUPPLY OF MONEY

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Money is what (a)   does.

2.

In case of full bodied money :

a)

commodity value>money value

b)

commodity value<money value

c)

commodity value=money value

d)

none of these

3.

Fudiciary money is accepted on the basis of

a)

government order

b)

mutul trust between payer and payee

c)

trust in banking system

d)

none of these

4.

Who supplies money

a)

government

b)

RBI

c)

commercial banks

d)

LIC

5.

M1measurement of money supply=

a)

C+DD+OD

b)

C+CRR+SLR

c)

C+POST OFFICE SAVING ACCOUNT+TERM DEPOSIT

d)

C+DD

6.

Money supply refers to :

a)

Total volume of money held by the public at a particular point of time

b)

Total volume of money held by the public at a period of time

c)

Total amount of money held by Government

d)

Both A & B

7.

In the terminology of economics and money demand, the terms M1 and M2 are also known as :

a)

Short money

b)

Long money

c)

Broad money

d)

Narrow money

8.

Other deposits with RBI includes:

a)

Deposits of commercial banks

b)

Demand Deposits of foreign central banks

c)

Deposits of public financial Institutions

d)

Both B & C

9.

what items are not included in the M1 measure of money supply?

a)

currency and coins with public

b)

inter bank deposits

c)

other deposit with RBI

d)

demand deposit with banks

10.

money concept is a __________concept

a)

stock

b)

flow

c)

both (a) and (b)

d)

neither (a ) nor (b)

11.

When one commodity is exchanged with another commodity the system is

a)

Barter system

b)

Monetary system

c)

Digital system

d)

Exchange sysrem

12.

Which one of these is a limitation of barter system

a)

Lack of double coincidence of wants

b)

Lack of store of value

c)

Lack of common measure of value

d)

All of these

13.

M3 is also known as

(a)  

14.

What possess general acceptability?

a)

Bank draft

b)

Money

c)

Bill of exchange

15.

What is the name of Central Bank in India?

a)

SBI

b)

RBI

c)

PNB

16.

Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-

a)

full bodied money

b)

fait money

c)

fiduciary money

d)

credit money

17.

Money thai is issued by the authority of the government is called-

a)

full bodied money

b)

fait money

c)

fuduciary money

d)

all the above

18.
which one is money ?
a)
cash
b)
cheque
c)
draft
d)
all the above
19.
Barter system is now replaced by
a)
Banking system
b)
International system
c)
Monetary system
d)
Financial system
20.

The ability to express the value of goods and services in different amounts of a currency is money's function as...

a)

a medium of exchange

b)

a unit of account

c)

a store of value