Top 50+ Solved Value of Money MCQ Questions Answer
Q. 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
Q. Under normal circumstances, the velocity of circulation of money in a country is:
a. 100%
b. Negative
c. Less than 10
d. Zero
Q. According to Keynes, demand for money is affected by:
a. Income
b. Rate of interest
c. Literacy rate
d. Both (a) & (b)
Q. 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
Q. 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
Q. Which people are most likely to gain during inflation?
a. Those living on pension
b. Those living on their savings
c. Those who are repaying borrowed money
d. Those who have lent money
Q. If quantity of money increases 100%, other things remaining constant, value of money changes by:
a. Increases by 100%
b. Decreases by 100%
c. Decreases by 200%
d. Does not change
Q. For the economy, prices are beneficial:
a. Falling slowly
b. Rising slowly
c. Rising fast
d. Falling fast
Q. Value of money means:
a. Gold purchased by money
b. General purchasing power of money
c. Importance of money
d. Demand for money
Q. Value of money and supply of money are related:
a. Inversely
b. Directly
c. Govt. law
d. Are not related
Q. They are not affected badly by rising prices:
a. Salaried persons
b. Businessmen
c. Debtors
d. Importers
Q. Inflation:
a. Makes distribution of income equal
b. Makes distribution of income unequal
c. Has no effect on distribution of income
d. Affects only industrial sector
Q. It is assumption of quantity theory of money:
a. Quantity of traded goods increases
b. Velocity of circulation of money constant
c. Govt. imposes new taxes
d. (a) and (b) of the above
Q. In the equation PY = MV showing quantity theory of money. Y represents:
a. Year of measurement of national income
b. National income
c. Tax revenue of the govt
d. (a) and (c) of above