Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. Match the following A B 1. (i) Commodity money (i) Currency 2. (ii) Metallic money (ii) Cheque 3. (iii) Paper money (iii) Gold 4. (iv) Credit money (iv) Bows and arrowsCodes;
a. (i) (ii) (iii) (iv)
b. (i) (iii) (ii) (iv)
c. (iv) (iii) (ii) (i)
d. (iv) (iii) (i) (ii)
Q. Which of the following is not correctly matched
a. Bows and arrows – used as money in the hunting society
b. Cattles – used as money in the pastoral society
c. Grains – used as money by the agricultural society
d. Gold and silver coins – used as money in which the face value is greater than its
Q. Assertion (A): Necessity led to the invention of moneyReason(R) : Barter system failed to perform the major functions of money
a. (A) is true but (R) is false.
b. Both (A) and (R) are false
c. Both (A) and (R) are true and (R) is the correct explanation of (A)
d. Both (A) and (R) are true but (R) is not the correct explanation of (A)
Q. Which one of the following is an example of “fiat money”
a. Precious stones
b. Grains
c. Gold coins
d. Currency notes
Q. In the case of paper currency
a. Intrinsic value and face value are equal
b. Intrinsic value is less than face value
c. Intrinsic value is greater than face value
d. None of the above
Q. The most liquid form of all assets is
a. Bonds
b. . Debentures
c. Bill of exchange
d. Currency notes
Q. In the case of a ‘full bodied money’
a. Intrinsic value is less than face value
b. Intrinsic value is equal to face value
c. Intrinsic value is greater than face value
d. None of the above
Q. In the case of a ‘token money’
a. Face value is less than the metal value
b. Face value is equal to the metal value
c. Face value is greater than the metal value
d. None of the above
Q. Demand for money arises from
a. Money acts as a medium of exchange
b. Money acts as a store of value
c. Both A and B
d. Neither A nor B
Q. Cost – push inflation arises due to
a. Rise in wages
b. Rise in profit
c. Rise in the prices of raw materials
d. All of the above
Q. In the Quantity Theory of Money Fischer states that, while other things remains thesame,
a. Price level varies directly with the quantity of money
b. Price level varies inversely with the quantity of money
c. Value of money varies directly with the quantity of money
d. None of the above
Q. Inflation is a situation where
a. Prices are falling
b. Value of money is falling
c. Value of money is rising
d. All of the above