Money – Inflation – Employment MCQs | Economics

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Money – An officially-issued legal tender used as a medium of exchange, usually through currency notes and coins.
Money economics MCQs | MCQs.CLUB

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Money Economics MCQs

Money – An officially-issued legal tender used as a medium of exchange, usually through currency notes and coins. Here on MCQs.club we have designed Multiple Choice Questions (MCQs) on Money Economics that fully cover MCQs on Money Definition, What Is Money, Money – Characteristics and Functions, Money: Meaning and Functions of Money, types of money in economics, forms of money. The MCQs are useful for Competitive exams, Business management exams and Professional accountancy exams.

  1. Money – An officially-issued legal tender used as a medium of exchange, usually through currency notes and coins.
    1. True
    2. False
  1. Identify which of the following is correct for “Barter”.
    1. Barter is where one type of good is exchanged for another.
    2. Barter can only be of value if there is a double-coincidence of wants.
    3. Both A&B
    4. None
  1. Problems with barter system include:
    1. Finding someone who has the opposite needs to you is problematic in a complex society.
    2. Fixing a measure across different product types is near enough impossible.
    3. Storing/ saving
    4. All of the above
  1. Functions of money include:
    1. To act as a medium of exchange
    2. To act as a unit of account
    3. To act as a store of value
    4. To act as a standard of deferred payments
    5. All of the above
  1. Assume that economy is in a state of hyperinflation, which of the following is correct for money?
    1. As a medium of exchange, people may not trust that the money they are holding will be exchangeable for goods and so money will lose this functionality.
    2. As a unit of account, inflation will distort the relative prices between goods making comparisons difficult.
    3. Both A&B
    4. None
  1. What are the Kinds of money?
    1. Commodity money
    2. Commodity-backed money
    3. Fiat money
    4. All of the above
  1. Commodity money –
    1. has value even if it wasn’t used as money (also known as intrinsic value).
    2. can be exchanged for the commodity on demand
    3. is money with no intrinsic value. The value comes solely from the fact that the government has decreed that it has money for that purpose.
    4. All of the above
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