( Best 30+ ) Value of Money MCQ

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Value of Money MCQ

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Value of Money MCQ

Value of Money MCQ

11. The equation of exchange PT = MV was given by:

A. Fisher

B. Crowther

C. Kuznets

D. Keynes

12. When value of money falls, they benefit more:

A. Farmers

B. Industrialist

C. Lenders

D. Debtors

13. When the nation’s money supply is Rs. 1200 billion and GDP is Rs. 4800 billion, velocity of circulation money is:

A. 0.25

B. 4

C. 0.4

D. 4 billion rupees

14. Which one is equation of exchange?

A. PT = MV

B. PV = MT

C. PM = TV

D. None of these

15. Inflation can be controlled by applying:

A. Monetary and fiscal policies

B. Monetary and Labour policy

C. Fiscal and commercial policies

D. All of the above

16. Inflation is a situation when:

A. Prices of some goods rise

B. General price level rises continuously

C. Prices double every year

D. Prices rise and fall

17. Under normal circumstances, the velocity of circulation of money in a country is:

A. 100%

B. Negative

C. Less than 10

D. Zero

18. According to Keynes, demand for money is affected by:

A. Income

B. Rate of interest

C. Literacy rate

D. Both (a) & (b)

19. During inflation:

A. Lenders lose, borrowers gain

B. Borrowers lose, lenders gain

C. Borrowers and lenders both lose

D. All sections of the society gain

20. The quantity demanded of money rises:

A. As the interest rises

B. As the interest rate falls

C. As the supply of money falls

D. As the number of banks rises

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