Reference no: EM132600095

Question 1. Which one of the following is/are the advantage of barter system?

a. Divisibility of certain articles

b. Double coincidence of wants

c. Difficulty to store wealth

d. All

Question 2. The characteristics of efficient money are:

a. General acceptability by the community

b. Scarcity

c. Reconcilability

d. All

Question 3. Each and every unit should be exactly the same as every other unit referred to as:

a. Homogeneity

b. Divisibility

c. Stability

d. Reconcilability

Question 4. Which one of the following is/are classified under Metallic Money?

a. Standard money/coins

b. Inconvertible/ fiat money

c. Credit money

d. All

Question 5. The contingent function of money is/ are:

a. It acts as standard of deferred or postponed payments.

b. It is a form in which wealth can be kept intact from one year to the next.

c. As acceptable means of payment and acts as a store value

d. Immediately used to solve problems and to pay debt immediately.

Question 6. Which one of the following statement is/are not true regarding to Paper currency standard

a. It consists of paper money which is unlimited legal tender and token coins of cheap metals.

b. Paper money may be either convertible or inconvertible.

c. It refers to monetary system in which the value of the monetary unit expressed in terms of a fixed quantity of some metal

d. None of the above

Question 7. Which one of the following is the advantage of fixed fiduciary system?

a. Security

b. Inspires public confidence

c. Inelastic

d. A and B

Question 8. _________refers to the total amount of wealth held by the household and companies.

a. The demand for money

b. The supply for money

c. None

Question 9. The determinants of money supply are both exogenous and endogenous which can be described broadly as:

a. The minimum cash reserve ratio

b. The level of bank reserves,

c. The desire of the people to hold currency relative to deposits.

d. All

Question 10. The factors which increase the demand for money except

a. A reduction in the interest rate.

b. A rise in the demand for consumer spending.

c. A decline of uncertainty about the future and future opportunities.

d. A rise in transaction costs to buy and sell stocks and bonds.