Money

Q1. Barter system refers to that system wherein:

a) goods are exchanged for goods
b) goods are not exchanged at all
c) goods are exchanged for domestic currency
d) goods are exchanged for foreign currency
Q2. Which of the following is not a function of Money
a) Medium of exchange b) Price stability
c) Store of value d) Unit of account
Q3. Identify the function of money which has led to capital formation and economic
development of the economy.
a) Medium of exchange b) Measure of value
c) Store of value d) Standard of deferred payment
Q4. Who supplies money in India ?
a) The RBI b) The commercial Banks
c) The government d) All of these
Q5.Supply of money is a :
a) flow variable b) stock variable
c) real flow d) none of these
Q6. Read the following statements carefully and choose the correct alternative among
those given below:
Statement1: ‘Term deposits’ are always for a specific period of time.
Statement2: Against term deposits, no interest is paid to the depositors.
a) Both the statements are true
b) Both the statements are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false.
Q7. What items are not included in M1 measure of supply?
a) Currency and coins with public b) Inter-bank deposits
c) Other deposits with RBI d) Demand deposits with banks
Q8. Assertion (A) : A common medium of exchange exists in the C-C economy.
Reason (R) : In the C-C economy,saving is possible only by way of storage of goods
a) Both (A) and (R) are true and reason (R) is the correct explanation of Assertion (A)
b) Both (A) and (R) are true and reason (R) is not the correct explanation of Assertion
(A)
c) (A) is true and reason (R) is false
d) (A) is false but reason (R) is true.
Q9. _________ is also known as transaction money.
a) M1 b) M2 c) M3 d) M4
Q10. Assertion (A) : Demand deposits is a non-Legal Tender Money.
Reason (R) : Depositors are given cheque facility to withdraw money from their account
or to make payments in case of demand deposits.
a) Both (A) and (R) are true and reason (R) is the correct explanation of Assertion (A)
b) Both (A) and (R) are true and reason (R) is not the correct explanation of Assertion
(A)
c) (A) is true and reason (R) is false
d) (A) is false but reason (R) is true.