Money Part 1, Concepts, Functions, Demand and Supply: Macroeconomics Online Test

Money:
Is a liability but not a claim
has constant Purchasing Power
Is currency but not a medium of exchange
Is a medium of exchange but not a currency
The most liquid asset
Money plays the role of:
Measure of Value
Store of Value
Medium of Exchange
Standard of Deferred Payments
All of the above
Which of the following act as a Determinant of the Demand for money except?
The prevailing Interest Rates
The Current level of Income
Current level of Output
The general Price level
All of the above
While defining Money, we can include: I Currency notes and coins II Demand deposits III Financial Exchange and Foreign Exchange Reserves
I
II
II
I and II
I, II and III
One important function of money is it provides a stand for,
Marginal Utility
Deferred Payments
Consumer’s preference
Consumer’s surplus
Difference in goods available to Consumers
What is money known as when its Money Value is equal to the Commodity Value of Money?
Coins
Illegal Money
Full-bodied money
Token Money
Fiat Money
“Money is a commodity which is used to denote anything which is widely accepted in payments of goods or in the discharge of business obligations.” This definition was given by:
Kent
Marshall
Keynes
Robertson
Walker
Money is a good standard for Deferred Payments because:
It facilitates Capital Formation
Compared to other commodities, it is relatively stable
Generally, it is highly acceptable
Compared to other commodities, it is highly durable
All of the above
Fiat Money refers to:
Money backed with Gold
Money backed by Silver
Money accepted by Overseas banks only
Money decreed as money by Government
None of the above
Examples of Near money include: I Demand Deposits II Savings and Loan Shares III Treasury Bills
I only
II only
III only
I and III
II and III
Description:

Money and its role can not be underestimated in the study of Economics. In an economy, Money performs multiple functions, be it Primary, Secondary or Contingent. Here is a 7-minute short Multiple Choice questions test relating to Money, its classification, functions, Supply of Money, and other related concepts. While taking this test, go through all the options very carefully and then, mark your answers.

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