Q. In the Quantity Theory of Money, Fischer states that while other things remains the same:
✅ Correct Answer: (A)
Price level varies directly with the quantity of money
General Economics MCQs and Notes
Q. Which of the following is a concept of ‘broad money”:
✅ Correct Answer: (C)
M3
Q. People are said to be suffered from “money illusion” since:
✅ Correct Answer: (A)
People merely consider with nominal money holdings
Q. In the case of a ‘token money’
✅ Correct Answer: (C)
Face value is greater than the metal value
Q. In the case of a ‘full bodied money’:
✅ Correct Answer: (B)
Intrinsic value is equal to face value
Q. The most liquid form of all assets is
✅ Correct Answer: (D)
Currency note
Q. Which of the following is a primary function of money?
✅ Correct Answer: (A)
Measure of value
Q. ‐‐‐‐‐‐ is not an example of ‘near money’
✅ Correct Answer: (D)
Currency notes