Chapter: Money
1.

Which property the paper money does not possess:

A. Acceptability
B. Divisibility
C. Durability
D. Portability
Answer» C. Durability
2.

A saving account in a bank represents the function of money:

A. A measure of value
B. A medium of exchange
C. A standard for deferred payments
D. Store of value
Answer» D. Store of value
3.

A student records her income and spending for past month, she uses the function of money

A. Medium of exchange
B. Standard of deferred payments
C. Store of value
D. Unit of account
Answer» D. Unit of account
4.

It implements monetary policy of the country:

A. Central bank
B. Commercial banks
C. Specialized bank
D. Finance department
Answer» A. Central bank
5.

Which property paper money does NOT Possess?

A. Acceptability
B. Divisibility
C. Durability
D. Portability
Answer» C. Durability
6.

Anything used as money must be:

A. Fixed in value
B. Fixed in supply
C. Legal tender
D. Readily acceptable
Answer» D. Readily acceptable
7.

What will promote savings?

A. Increase in credit facilities
B. Increase in taxation
C. Increase in personal incomes
D. Rising prices
Answer» C. Increase in personal incomes
8.

Liquidity of a monetary asset means:

A. Velocity of circulation of money
B. Easy availability of money
C. Ready acceptability of monetary asset
D. The monetary asset has lost it value
Answer» C. Ready acceptability of monetary asset
9.

Barter means:

A. Trade through metallic money only
B. Trade of goods only excluding services
C. Trade of very low value goods
D. Trade without use of money
Answer» D. Trade without use of money
10.

Government securities:

A. Mean currency
B. Are near money
C. Are bought and sold on stock exchange market
D. (b) and (c) of above
Answer» D. (b) and (c) of above
11.

Which is the characteristic of a good money:

A. Has good design
B. Has high value
C. Has a fixed value in gold
D. Is readily accepted by people
Answer» D. Is readily accepted by people
12.

This is NOT money

A. Currency
B. Prize bond
C. Demand deposit in a bank
D. Coins
Answer» B. Prize bond
13.

which of the following is true for Cross cheque?

A. Is issued only by a business firm
B. Is not accepted by banks
C. Ensures immediate payment of cash to the holder
D. None of the above
Answer» D. None of the above
14.

This is a characteristic of good money:

A. High intrinsic value
B. Liquidity
C. Attractive design
D. Easy to duplicate
Answer» B. Liquidity
15.

This is a characteristic of good money:

A. High intrinsic value
B. General acceptability
C. Attractive design
D. High purchasing power
Answer» B. General acceptability
16.

It is a kind of money:

A. Credit money
B. Discredit money
C. Trust money
D. False money
Answer» A. Credit money
17.

It is included in kinds of money:

A. Legal money
B. Credit money
C. Token money
D. All of the above
Answer» D. All of the above
18.

Treasury Bill is a document used for:

A. A short-term loan to the exporter
B. A long-term loan to the government
C. A short-term loan to the government
D. A short-term loan to a govt. employee
Answer» C. A short-term loan to the government
19.

Which does NOT represent a method of payment?

A. Cheque
B. Saving certificate
C. Currency note
D. Bill of exchange
Answer» B. Saving certificate
20.

Which is NOT a desirable characteristic of money?

A. Portable
B. Uniform
C. Easily recognized
D. Easily duplicated
Answer» D. Easily duplicated
21.

According to Keynes people demand money for purposes (motives):

A. 1
B. 2
C. 3
D. 4
Answer» C. 3
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