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1. Which one of the following approaches to the definition of money gives the widest possible view of money?




2. The best example of representative full-bodied money is found in the gold certificates which circulated in the U.S.A. before being withdrawn from circulation in:




3. Money has been defined as that by delivery of which debt contracts and price contracts are discharged and in the the shape of which general purchasing power is held . Whole definition is this?




4. Fiat money refers to:




5. Which one of the following is an example of quasi-money or near-money?




6. When the commodity value of money and its value as money are equal it is called:




7. The limited legal-tender money stands for the component of money which:




8. As compared to the classical theory which function of money was stressed more in the Keynesian theory?




9. Bad money drives good money out of circulation. With whole name is this law associated?




10. Identify the country which was the first to adopt the gold standard:




11. During which decade of the nineteenth century did most European countries adopt the gold standard?




12. When did the UK finally abandon the gold standard?




13. Who is generally regarded as the founder of the Modern Quantity Theory of Money?




14. The Quantity Theory of Money establishes the relationship between quantity of money in an economy and the level of:




15. Identify Pigou s cash balances equation:




16. In the Fisher s equation of exchange MV = PT what does T denote?




17. Cost-push inflation is caused by:




18. Who introduced the concept of the real balance effect?




19. Which of the following according to Milton Friedman is not a key determinant of the demand for money?




20. The cash transactions approach to the quantity theory of money is usually associated with the name of:




21. The relationship between the market rate of interest and the market price of a bond is:




22. The degree of elasticity in respect of speculative demand for money under the liquidity trap conditions is:




23. A retail price index is a good measure of changes in:




24. Which of the following is not an instrument of monetary policy?




25. At a very low rate of interest the interest-elasticity of the speculative demand for money becomes:




26. In which capacity does a person stand to gain from deflation?




27. The liquidity trap condition occurs at a:




28. In which capacity does a person stand to gain from deflation?




29. According to the classical approach the demand for money primarily depends upon:




30. Which of the following measures is helpful in controlling inflation?




31. Stagflation refers to a situation which is characterised by:




32. During the period of hyper-inflation there takes place astronomical rise in prices and as a result money becomes almost worthless. Such a situation was witnessed in Germany in 1923 and in China in:




33. The first explanation of stagflation was offered originally in 1931 by:




34. The reduction or elimination of inflation is known as:




35. Which of the following is not a function of a commercial bank?




36. Which of the following is not a liability of commercial banks?




37. Which is not a function of the central bank of a country?




38. Under the unit banking system each individual bank is a separate entity having its own independent management and board of directors. Which country is generally regarded as the home of the unit banking system?




39. The branch banking system is currently in vogue in most countries of the world. Identify the country where it first developed:




40. The china banking system a variant of the group banking system developed around the mid-nineteenth century and reaching the apex of popularity in the present century. In which country did it develop?




41. In which country was the instrument of minimum legal cash reserves ratio for banks first introduced?




42. Which of the following is not a part of the un-organised Indian money market?




43. Which one of the following will reduce the capacity of commercial banks to lend?




44. If there is a significant decrease in the demand for loans banks will be forced to:




45. Open market operations refer to the buying and selling of:




46. Bank rate refer to the interest rate at which:




47. The immediate effect of credit-creation by banks is:




48. Selective credit control devices are used by the central bank of a country to:




49. In a bimetallic standard:




50. One of the following is an instrument of qualitative credit control. Identify it:




51. Arrange the following assets of a bank in the ascending order of income (i.e. in the descending order of liquidity): I-Bills II-Loans III-In-vestments in Government and other approved securities




52. Which of the following is an instrument of quantitative credit control?




53. Which of the following is not an item on the assets side of the balance sheet of a commercial bank?




54. Commercial banks have always to face a conflict between:




55. The main function of legal cash reserve requirements is to:




56. Since when has the Reserve Bank of India been successfully operating the instrument of selective credit control in this country?




57. Identify the country which first employed credit rationing as an instrument of credit control:




58. The terms of trade refer to:




59. By which year had the gold standard virtually disappeared from the world as an international monetary system?




60. The market for very short term loans is known as:




61. If the increase in exports exceeds the increase in imports and other things remain the same then the level of income will:




62. Which of the following was not favoured by the mercantilists?




63. Of the following concepts of term of trade which one was introduced by F.W. Taussig?




64. Dynamic factors in the realm of international trade theory relate to changes in:




65. The devaluation of currency by a country is designed to lead to:




66. What would be the impact on the country s balance of payments position when in the context of inflationary pressures recourse is taken to expenditure reducing policies?




67. Which of the following items in the balance of payments is invisible?




68. If the elasticity of foreign demand for the country s exports is unity the supply curve of foreign exchange will be:




69. A deficit disequilibrium in the balance of payments can be corrected through:




70. The spot and forward markets in foreign exchange are linked to each other through:




71. What does the modern theory of international trade predict regarding difference in factor prices between nations on account of trade? The difference:




72. The multiple exchange rates were first employed by:




73. Which of the following statements is not correct?




74. Under the flexible exchange rate system the exchange rate is determined by:




75. The elasticity of demand for foreign exchange for financing capital outflow is:




76. The foreign exchange market performs the function of:




77. According to the Heckscher-Ohlin theory of international trade the most important cause of differences in relative commodity pries and trade between nations is the differences in:




78. On which of the following is the law of comparative costs based?




79. Which among the following is not an assumption of the classical - territory of comparative cost advantage?




80. Developing countries usually complain of:




81. Adam Smith s views on world trade can be best understood if one considers them as a reaction to:




82. What proportion of international trade is based on absolute differences in costs of production? .