CA CPT - Basics of General Economics - Money and Banking System in India

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Question - 1

Money means anything that serves as

  • A Medium of Exchange
  • B Common Measure of Value
  • C Store of Value
  • D All of the above

Question - 2

Measure of value of all goods and services refers ___________ from following function of money.

  • A Medium of exchange
  • B Unit of account
  • C Standard of different payments
  • D Store of value

Question - 3

Which of the following functions are not performed by Money?

  • A As a medium of exchange
  • B As a unit of account
  • C As a store of value
  • D As a tissue paper

Question - 4

Which is not the static function of money

  • A As a medium of exchang
  • B As a unit of account
  • C As encouragement to division of labour
  • D As standard of deferred payment

Question - 5

Functions of money doesn't include:

  • A Medium of exchange
  • B Store of value
  • C Measure of value
  • D Employment generation

Question - 6

For an indian Economist, Money represents -

  • A Dollar
  • B Pounds Sterling
  • C Indian Rupee
  • D All of the above merely represent different units of money.

Question - 7

Which of the following statements about Money is incorrect?

  • A There are many assets which carry the attribute of money.
  • B Money is what money does
  • C Value of money remains constant at all periods of time
  • D None of the above

Question - 8

For Modern Economist or Empiricists, the crucial function of Money is -

  • A Store of Values
  • B Common Measure of Value
  • C Medium of Exchange
  • D All of the above

Question - 9

For a Modern Economist, which of the following instruments serves to store value?

  • A Only Currencies, Demand Deposits of Banks.
  • B Financial Assets like Bonds, Government Securities,Time Deposits with Banks and Equity Shares
  • C Both (a) and (b)
  • D Neither (a) nor (b)

Question - 10

According to the Empiricists, to include Financial Asset under the purview of Money, which of the following condition should be satisfied?

  • A Stability of demand function
  • B High degree of substitutability
  • C Feasibility of measuring statistical variations in real economic factors.
  • D All of the above
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