mcq for Money

1.      Which of the following is an adequate definition of money?

a.       Anything which is accepted for tax payments.

b.      Anything which is exchanged of fixed rate of gold.

c.       Anything which banks are willing to accept.

d.      Anything which is generally accepted in exchange for goods and services.

2.      Which of these qualities of money is essential before it can perform any of its functions.

a.       Acceptability

b.      Stability in value

c.       Durability

d.      Cognizibility

3.      Which of the following is not the necessary condition of money?

a.       It is a unit of account

b.      It is a store of value

c.       It has intrinsic value

d.      It is medium of exchange

4.      Which of the following is not the indirect importance of money in the field of economics?

a.       Freedom from inconvenience of barter system

b.      Index of economics development.

c.       Basis of laws of equi-marginal utility.

d.      Measure of social welfare.

5.      Which one of the following does not cover the economics evils of money?

a.       Instability of value

b.      Reduction in consumption

c.       Trade cycle

d.      Problem of black money.

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