MCQ Money and Financial System --- Money: Definition, Functions and Importance

-

 MCQ Money and Financial System

 Money: Definition, Functions and Importance

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO


1, Direct exchange of one commodity for another is termed AS:


(a) Measure of value


(b) Barter (✓)


(c) Price


(d) None of these


 


2, Meaning of Exchange is:


(a) Doing business


(b) Purchasing goods


(c) Transfer of wealth (✓)


(d) All these


 


3, Which of the following is a demerit of barter system?


(a) Want of double coincidence (✓)


(b) Absence of money circulation


(c) Absence of natural resources


(d) Scarcity of goods


 


4, The term money has been derived from the Latin Word:


(a) Moneta (✓)


(b) Peconja


(c) Monate


(d) Menoty


 


5, Theory of evolution of money was propounded by:


(a) Prof. Crowther (✓)


(b) Prof. Spalding


(c) Prof. Marshall


(d) None of these


 


6, Theory of spontaneous growth of money was propounded by:


(a) Prof. Marshall


(b) Prof. Spalding (✓)


(c) Prof. Crowther


(d) None of these


 


7, “Money is what money does”, this definition was given by:


(a) Hartley Withers (✓)


(b) Robbins


(c) Knapp


(d) Friedman


 


8, “Anything which is declared by the state as money becomes money”, this definition was given by:


(a) Thomas


(b) Hartley Withers


(e) Knapp (✓)


(d) Coulborn


 


9, “Money may be defined as the means of valuation and payment,” this definition was given by:


(a) Coulborn (✓)


(b) Knapp


(c) Thomas


(d) None of these


 


10, “Money is one thing that have general acceptability”, this definition was given by:


(a) Seligman (✓)


(c) Keynes


(b) Crowther


(d) Kent


 


11, “Anything that is generally acceptable as a means of exchange and as the same time as a measure and store of value”, this definition was given by:


(a) Seligman


(b) Crowther (✓)


(c) Keynes


(d) Kent


 


12, According to conventional approach, money includes:


(a) Currency


(b) Demand Deposit


(c) Currency + Demand Deposits (✓)


(d) None of above


 


13, According to Chicago Approach, money includes:


(a) Currency+Demand Deposits


(b) Currency+ Demand Deposits+Time Deposits (✓)


(c) Demand Deposits + Time Deposits


(d) None of above


 


14, Which of the following is a characteristic of money?


(a) General Acceptability


(b) Medium of Exchange


(c) Liquid Asset


(d) All these (✓)


 


15, Which of the following is not correct about money?


(a) Money is a veil (✓)


(b) Money is not a veil


(c) Money is a means and not an end


(d) Liquid Asset


 


16, Medium of exchange is the following function of money:


(a) Primary (✓)


(b) Secondary


(c) Contingent


(d) All these


 


17, Money has been considered as primary invention of man, this statement is given by:


(a) Seligman


(b) Knapp


(c) Coulborne


(d) Crowther (✓)


 


18, Which of the following is a function of money?


(a) Medium of exchange


(b) Store of value


(c) Transfer of value


(d) All these (✓)


 


19, Which of the following is the function of money, according to Hartley Withers?


(a) Medium of exchange


(b) Stantard of deferred payment


(c) Store of value


(d) All of the above (✓)


 


20, Something which is freely used and generally accepted as: a medium of exchange and as a unit of account is called:


(a) Money (✓)


(b) Capital


(c) Assets


(d) Wealth


 


21, Consider the following:


Scarcity

Homogeneity

Durability

Divisibility

Which of the above are the essential qualities of a good money material?


(a) 1 and 2


(b) 1, 2 and 3


(c) 2, 3 and 4 (✓)


(d) 1, 2, 3 and 4


 


22, Medium of exchange and measure of value, both are the constituents of:


(a) Primary functions of money (✓)


(b) Contingent functions of money


(c) Secondary functions of money


(d) None of above


 


23, Consider the following:


Store of value

Measure of value

Transfer of value

Standard of deferred payments

Which of the above are the secondary functions of money?


(a) 1, 2 and 3


(b) 1, 3 and 4 (✓)


(c) 2, 3 and 4


(d) All of these


 


24, Consider the following:


Basis of credit

Distributor of collective production

Helps in the maximization of utility

Guarantor of solvency

Which of the above are contingent functions of money?


(a) 1, 2 and 4


(b) 2, 3 and 4


(c) 1, 3 and 4


(d) 1, 2, 3 and 4 (✓)


 


25, Money performs its contingent functions normally in:


(a) Underdeveloped countries


(b) Developing countries


(e) Both (a) and (b)


(d) Developed countries (✓)


 


26, Some assets which are very much liquid though not as much as money itself is called:


(a) Near money (✓)


(b) Dear money


(c) Substitute money


(d) Fiat money


 


27, A Financial bill which does not arises in connection with genuine commercial transaction is called:


(a) Commercial bill


(b) Banker’s bill (✓)


(c) Treasury bill


(d) None of these


 


28, Promises by the government to pay a fixed sum of money at a prescribed date generally three months ahead, are called:


(a) Treasury bills (✓)


(b) Government bill


(c) Promissory bills


(d) Non-commercial bills


 


29, Exchange bills, treasury bills, bonds, debentures are the examples of:


(a) Fiat money


(b) Near money (✓)


(c) Liquid money


(d) None of these


 


30, Wealth that has physical existence and is required either for its own sake or for its contribution to production is called:


(a) Physical wealth


(b) Capital wealth


(c) Real wealth (✓)


(d) Capital assets


 


31, Which of the following would not be termed “Near Money”?


(a) Bills of


(b) ₹ 1000 notes (✓)


(c) Treasury bills


(d) Debentures


 


32, Choose the incorrect statement: Asset demand for money is that it:


(a) Is held as an asset


(b) Is held as transactions are unforeseen and unexpected


(c) Is convenient for holding and also certain in terms of value (✓)


(d) Becomes significant during war


 


33, With the use of currency:


(a) Velocity of money increases (✓)


(b) National Income increases


(c) Capacity increases


(d) Inflation occurs


 


34, Primary functions of money includes:


(a) Medium of Exchange


(b) Measure of value


(c) Store of value


(d) Both (a) and (b) (✓)


 


35, Which of the following is not secondary function of money?


(a) Standard of deferred payments


(b) Store of value


(c) Transfer of value


(d) Basis of credit creation (✓)


 


36, Which of the following is a contingent function of money?


(a) Distribution of National Income


(b) Basis of credit creation


(c) Guarantor of solvency


(d) All above (✓)


 


37, Who classified the functions of money into static and dynamic functions?


(a) Paul Einzing (✓)


(b) Knapp


(c) Crowther


(d) Marshall


 


38, Which of the following is static function of money?


(a) Medium of exchange


(b) Transfer of value


(c) Standrad for deferred payment


(d) All above (✓)


 


39, Which of the following is dynamic function of money?


(a) Full utilization of resources


(b) Facilitates deficit financing


(c) Economic development


(d) All above (✓)


 


40, Who among the following did not attach much significance to the role of money?


(a) Adam Smith


(b) J.S. Mill


(c) Pigoy


(d) All of these (✓)


 


41, The……… are of the opionion that money plays a significant role in increasing the level of income and employment.


(a) Adam Smith


(b) Pigou


(c) Keynes


(d) Friedman (✓)


 


42, “Money is such a path which is used for transporting entire output of the district to the market, but which in itself produces nothing”, this statement is given by:


(a) Adam Smith (✓)


(b) Mill


(c) Pigou


(d) None of these


 


43, “Money is a wrapper in which things come to you”, this statement is given by:


(a) Pigou (✓)


(b) Keynes


(c) Friedman


(d) Mill


 


44, “Modern economic life which is founded on specialization would not be possible without money”, who remarked this?


(a) Friedman


(b) Benham (✓)


(c) Mill


(d) Pigou


 


45, “Money is the Pivot around which the whole economic science clusters”, this statement is given by:


(a) Marshall (✓)


(b) Pigou


(c) Mill


(d) Prof. Dey


 


46, In which economic system, money plays a vital role?


(a) Capitalist Economy


(b) Socialism


(c) Mixed Economy


(d) All of these (✓)


 


47, Money plays a important role in:


(a) Economic fields


(b) Social fields


(c) Political fields


(d) All of these (✓)


 


48, “Lack of money is the root of all evils,” who said this?


(a) Bernard Shaw (✓)


(b) Robertson


(c) Pigou


(d) Mill


 


49, “Money is a good servent but bad master,” this statement is given by:


(a) Robertson (✓)


(b) Mill


(c) Pigou


(d) Marshall


 


50, Economic evil of money is:


(a) Instability of value


(b) Over capitalisation


(c) Unequal distribution of wealth


(d) All of the above (✓)


 


51, Which of the following is social evil of money?


(a) Problem of black money


(b) Unequal distribution of wealth


(c) Economic wastage


(d) Encourage Materialism (✓)


 


52, In which of the following economic system sovereignty of the consumer become possible?


(a) Capitalism (✓)


(b) Socialism


(c) Mixed economy


(d) None of these


 


53, Near money is….. than money:


(a) More liquid


(b) Less liquid (✓)


(c) Narrow term


(d) None of these


 


54, Quality of good money


(a) Acceptability


(b) Durability


(c) Portability


(d) All these (✓)


 


55, Currency includes:


(a) Metallic coins


(b) Notes


(c) Credit money


(d) Both (a) and (b) (✓)


 


56, The money whose intrinsic value is not equal is its face value, is termed as:


(a) Commodity Money


(b) Representative Money (✓)


(c) Actual Money


(d) None of these


 


57, Paper money is an example of:


(a) Commodity money


(b) Representative money (✓)


(c) Actual money


(d) None of these


 


58, Fiat money is also termed as:


(a) Convertible money


(b) Inconvertible money (✓)


(c) Commodity money


(d) None of these


 


59, Legal Tender Money includes:


(a) One-rupee coin


(b) Paper currency notes


(c) Cheque


(d) Both (a) and (b) (✓)


 


60, Optional money includes:


(a) Cheques


(b) Drafts


(e) Bills of Exchange


(d) All of these (✓)


 


61, The coins whose face value is more than intrinsic value termed as:


(a) Standard coins


(b) Token coins (✓)


(c) Subsidiary coins


(d) None of these


 


62, Gresham law is applicable to:


(a) Public expenditure


(b) Banks


(c) Finance


(d) Money (✓)


 


63, The qualities of a good money are:


(a) General acceptability


(b) Portability


(c) Cognizability


(d) All of these (✓)


 


64, As economy grows, the relative importance of credit money:


(a) Increases (✓)


(b) Decreases


(c) Remains constant


(d) None of these


 


65, Money which is a source of many blessings to mankind, becomes also, unless we control it, a source of perils and confusion.” Who has given this view point?


(a) Crowther


(b) Robertson (✓)


(c) Alfred Marshall


(d) None of these


 


66, Which is the most convenient medium of exchange?


(a) Currency (✓)


(b) Deposit money


(c) Credit card


(d) None of these


 


67, Concept of inside money was introduced by:


(a) Gurley R. Show (✓)


(b) R. Solow


(c) Stigler


(d) Sweezy


 


68, What is the correct sequence of following developments?


Barter system

Plastic money

Paper money

Gold standard

Credit money

(a) 1, 4, 3, 5, 2


(b) 1, 3, 5, 4, 2


(c) 1, 2, 3, 4, 5


(d) 5, 3, 4, 2, 1


 


69, Inconvertible paper money which circulates in the country, under extraordinary circumstances on the command of the State is called:


(a) Imposed money


(b) Fiat money (✓)


(c) Near Money


(d) Fiat currency


 


70, None-legal tender money like cheques, bank drafts, hundies, bills of exchange, etc. are called:


(a) Optional money (✓)


(b) Near money


(c) Near money


(d) Liquid-money


टिप्पणियाँ

एक टिप्पणी भेजें

इस ब्लॉग से लोकप्रिय पोस्ट

PAPER-BUSINESS ORGANISATION QUESTION BANK

-
चित्र
 PAPER-BUSINESS ORGANISATION QUESTION BANK 1-किसी व्यावसायिक संस्था की स्थापना करते समय किन किन बातों का ध्यान रखा जाना चाहिए? (What are the things to be kept in mind while setting up a business organization?) 2-व्यावसायिक पर्यावरण के विभिन्न घटकों का वर्णन कीजिए।(Describe the various components of business environment.) 3-संयुक्त स्कन्ध कंपनी से आप क्या समझते हैं? एक संयुक्त स्कन्ध कंपनी की स्थापना के संबंध में विभिन्न औपचारिकताओं का वर्णन कीजिए। (What do you understand by Joint Stock Company?  Describe the various formalities regarding the formation of a Joint Stock Company.) 4-संयन्त्र अभिन्यास से आप क्या समझते हैं? इसके उद्देश्य क्या है? संयन्त्र अभिन्यास के विभिन्न प्रकार बताइए। What do you mean by plant layout? What are its objectives? Explain various types of Plant Layouts. 5- व्यावसायिक संगठनों के विभिन्न स्वरूपों का संक्षेप में वर्णन कीजिए। (Briefly describe the various forms of business organizations.) 6-व्यवसाय, पेशा, उद्योग तथा रोजगार की अवधारणा को उदाहरण के साथ स्...
और पढ़ें

हिंदुस्तान जिंदाबाद था, जिंदाबाद है, और जिंदाबाद रहेगा।

-
चित्र
 हिंदुस्तान             जिंदाबाद था,                            जिंदाबाद है,                                          और                                                 जिंदाबाद रहेगा। आपको यह तो पता होगा की भारत 100 मिलियन वर्षो पहले एक द्वीप हुआ करता था?  तक़रीबन 50-60 मिलियन साल पहले, भारत का  एशियाई महाद्वीप से टकराव हुवा और इस तरह दुनिया की छत यानि हिमालय का जन्म हुआ। गज़ब तथ्य, है ना? भारत अपनी समृद्ध विरासत और संस्कृति के लिए प्रसिद्ध है। भारत की प्रतिभा यहाँ नहीं रुकती है। वास्तव में, भारत की समृद्धि इसके इतिहास, कला, प्राचीन तकनीकों, विज्ञान और बहुत कुछ के संदर्भ में अथाह है। भारत अनगिनत चीजों का आविष्कारक रहा है। आज हम आपको ऐसे ही 30 र...
और पढ़ें

What do you understand by business? Describe different types of business activities with examples.

-
चित्र
 Questions -What do you understand by business? Describe different types of business activities with examples. Answer -Business refers to the organized effort of individuals or organizations to produce and sell goods or services with the goal of earning a profit. Different types of business activities include: 1. Production: Creating goods or services, e.g., manufacturing, farming, or software development. 2. Distribution: Moving goods or services from the producer to the consumer, e.g., logistics, transportation, or wholesaling. 3. Marketing: Promoting and selling goods or services, e.g., advertising, sales, or branding. 4. Finance: Managing money and investments, e.g., banking, accounting, or investing. 5. Human Resources: Managing employee relations, training, and benefits, e.g., recruitment, talent management, or employee engagement. 6. Research and Development: Creating new products, services, or processes, e.g., innovation, product design, or scientific research. 7. Operation...
और पढ़ें