1st Year Principles of Economics Chapter 10 TestMoney

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. "What performs the functions of money, is money". This definition of money is stated by:

   1. Prof Walker

   2. Prof Marshall

   3. Prof Crowther

   4. Prof Pigou

2. Unit of account money in Pakistan is:

   1. Rial

   2. Rupee

   3. Dollar

   4. Pound

3. "Money is a thing by which payments of agreements of borrowing and pricing are made and general purchasing power is stored in it". This definition of money is stated by the economist:

   1. Prof Marshall

   2. Prof Walker

   3. Prof Keynes

   4. Prof Crowther

4. Quantity theory of money failed during world economic depression:

   1. 1920

   2. 1925

   3. 1929

   4. 1935

5. According to quantity theory of money one halving the quantity of money prices:

   1. Increase

   2. Double

   3. Decrease

   4. One half

6. Prof Fisher presented quantity theory of money in the form of an equation in:

   1. 1905

   2. 1911

   3. 1915

   4. 1917

7. The money is which payment can be made only to certain extent is called:

   1. Unlimited legal teender money

   2. Limited legal tender money

   3. Metallic money

   4. Paper money

8. When demand for goods and services rises, then velocity of circulation of money:

   1. Increase

   2. Decrease

   3. Remains constant

   4. Does not change

9. Exchange of goods with goods is called:

   1. Medium of exchange

   2. Store of value

   3. Scale of measure of value

   4. Barter system

10. If face value is equal to the metal value of a coin it is called as:

    1. Paper money

    2. Token money

    3. Credit money

    4. Standard money