InstaQB

Home
Institutions
- Institutions
  
  Polytechnic Colleges
  
  Medical Colleges
  
  Arts & Science Colleges
  
  Universities
  
  Engineering Colleges
  
  Agricultural Colleges
  
  Research Institute
  
  Law Colleges
  
  Audiology and Speech Colleges
  
  Business & Management colleges
  
  Nursing colleges
  
  Hotel Management institutes
  
  Aeronautical Colleges
  
  Bachelor's Degree
Syllabus
Courses
Stateboard
- 12th Standard English Medium
  
  Maths
  
  Physics
  
  Chemistry
  
  Biology
  
  Computer Science
  
  Business Maths
  
  Economics
  
  Commerce
  
  Accountancy
  
  History
  
  Computer Applications
  
  Computer Technology
  12th Standard Tamil Medium
  
  உயிரியல்
  
  கணினி பயன்பாடுகள்
  
  கணினி அறிவியல்
  
  வணிகக் கணிதம்
  
  வணிகவியல்
  
  பொருளியல்
  
  கணிதவியல்
  
  வேதியியல்
  
  இயற்பியல்
  
  கணினி தொழில்நுட்பம்
  
  வரலாறு
  
  கணக்குப்பதிவியல்
  11th Standard English Medium
  
  Maths
  
  Commerce
  
  Economics
  
  Biology
  
  Business Maths
  
  Accountancy
  
  Computer Science
  
  Physics
  
  Chemistry
  
  Computer Applications
  
  History
  
  Computer Technology
  
  Bio - Zoology
  11th Standard Tamil Medium
  
  கணிதவியல்
  
  உயிரியல்
  
  பொருளியல்
  
  இயற்பியல்
  
  வேதியியல்
  
  வணிகக் கணிதம்
  
  கணினி அறிவியல்
  
  கணக்குப்பதிவியல்
  
  வணிகவியல்
  
  கணினி பயன்பாடுகள்
  10th Standard English Medium
  
  Mathematics
  
  Science
  
  Social Science
  
  9th Standard English Medium
  
  Mathematics
  
  Science
  
  Social Science
  
  8th Standard English Medium
  
  Mathematics
  
  Science
  
  Social Science
  7th Standard English Medium
  
  Mathematics
  
  Science
  
  Social Science
ICSE/ISC
- Class XII
  
  Mathematics
  
  Physics
  
  Accountancy
  
  Biology
  
  History
  
  Geography
  
  Psychology
  
  chemistry
  
  Economics
  
  Computer Science
  
  Political Science
  
  Business Studies
  Class XI
  
  Accountancy
  
  Chemistry
  
  Mathematics
  
  Biology
  
  Geography
  
  Physics
  
  History
CBSE
- 12Th Standard
  
  Physics
  
  Chemistry
  
  Maths
  
  Biology
  
  History
  
  Economics
  
  Commerce
  
  Geography
  
  Socialogy
  
  Business Studies
  
  Computer Science
  
  Biotechnology Class
  
  Political Science
  
  Home Science
  11Th Standard
  
  Physics
  
  Chemistry
  
  Maths
  
  Biology
  
  History
  
  Economics
  
  Commerce
  
  Socialogy
  
  Business Studies
  
  Geography
  
  Home Science
  
  Computer Science
  
  Biotechnology Class
  
  Political Science
  10Th Standard
  
  Physics
  
  Chemistry
  
  Biology
  
  Mathematics
  
  Economics
  
  Geography
  
  History & Civics
  
  Computer Application
  9Th Standard
  
  Physics
  
  Chemistry
  
  Biology
  
  mathematics
  
  Computer Application
  
  Economics
  
  Geography
  
  History & Civics

12th Economics Monthly Test - 2 ( Monetary Economics )

St. Britto Hr. Sec. School - Madurai

12th Economics Monthly Test - 2 ( Monetary Economics )-Aug 2020

Time : 2.30 Hours

Part - A

Multiple Choice Question - Answer All Question

Match the items in the List – I with items in List – II. Select the correct answer from the code given below :

List - I List - II

I. M1 1. Currency, coins and demand
deposit

II. M2 M1 + Savings deposits with
post office savings banks

III. M3 M2 + Time deposits of all
commercial and cooperative
banks

IV. M4 M3 + Total deposits with
Post offices.

I II III IV

3 2 1 4
I II III IV

2 4 1 3
I II III IV

2 3 4 1
I II III IV

1 2 3 4

Fisher’s Equation of quantity theory states that:

P varies directly with income
P varies directly with M
P and M are constant
None of the above

" _______ can be anything that is generally acceptable as a means of exchange and atthe same time acts as a measure and a store of value”. What Crowther denotes as ‘anything’ in the definition given?

Money
Assets
Gold
Vehicles

During __________ the level of economic activity becomes extremely low.

Boom
Recession
Depression
Recovery

Inflation means

Prices are rising
Prices are falling
Value of money is increasing
Prices are remaining the same

In Fisher’s transaction velocity model, one of the following is not an assumption

Velocity of circulation of money is constant
The volume of transactions is constant
Full employment
P is considered as an active factor

The symbol of India rupee came into use on _______?

25th July, 2010
16th July, 2010
15th July, 2010
None of the above

Which is not a major anti-inflationary fiscal measures: are the following

Reduction of Government Expenditure
Public Borrowing
Augmenting Foreign Investment
Enhancing taxation

________system is managed by the Central Monetary Authority.

Plastic money
Metallic Standard
Silver standard
Paper currency

The new symbol designed by D.Udaya Kumar, a post graduate of IIT Bombay was finally selected by the Union cabinet on ______

15th July, 2010
16th July, 2010
15th July, 2011
25th July, 2010

Assertion (A) Money has the quality of general acceptability, and all exchanges take place in terms of money.
Reason (R) On account of the use of money, the transaction has now come to be divided into two parts.

Both (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(A) is true, but (R) is false.
(A) is false, but (R) is true.

The exchange of one good for another without the use of money is called______

Supply of Money
Inflation
Deflation
Barter

Barter system was introduced by________ tribes.

Mesopotamia
Phoenician
Babylonian
Jarwa

Money is

acceptable only when it has intrinsic value
constant in purchasing power
the most liquid of all assets
needed for allocation of resources

The basic distinction between M₁ and M₂ is with regard to

post office deposits
time deposits of banks
saving deposits of banks
currency

Part - B

Generic 2 - Answer All Question

What is Currency Deposit Ratio (CDR)?

Answer the questions below using the following information:
All figures are in billions of dollars.

Currency held outside banks Rs.800

Demand Deposits 1000

Traveler's Checks 100

Other checkable deposits 200

Savings accounts 300

Money market accounts 100

Other near monies 200

a. What is the value of M1?
b. What is the value of M2?

Define paper currency.
What is Recovery?

What is gold standard?

Mention the components of Money Supply in India.

State the terms of “MV = PT”

Define Money

Part - C

Generic 3 - Answer All Question

Write a note on paper currency standard

What is money supply?

Fill in the following table by indicating whether the proposed Central Bank action will increase or decrease the money supply. If the action is not a Central Bank power then write not applicable.

Action Effect on money supply

A decrease in central spending

A decrease in the required reserve

A sale of government debt

A lowering of the discount rate

Buying government debt

A decrease in taxe

What is money? Explain the three functions that money performs. Which one is the primary function of money?

Draw the diagram of Fisher’s Quantity theory of money.
Explain Effects on Production of Inflation.

Explain disinflation

Write a note on metallic money

Part - D

Generic 5 - Answer All Question

What are the causes and effects of inflation on the economy?

List the problems in defining Money Supply.

Illustrate Fisher’s Quantity theory of money.

Consider M = Rs. 1000. M’ = Rs. 500, V = 3, V’ = 2, T = 4000 goods and Find the value of money using Fisher’s quantity theory of

Solve and discuss the following using Marshall “Cash Balance Approach”. Suppose money supply in cash and bank deposits (M) = Rs. 1,000. (ii) The total annual national income (R) = 10,000 units. (iii) The goods (income) which the community wants to hold in money (K), say one-fifth of Y = 2,000 units.
Compare and contrast inflation and deflation.

Comment

Add Comment

Tamilnadu Stateboardszs - Class