A level Money Theory Quiz 1

15 QuestionsMultiple ChoiceFree Practice

About this quiz

This A level Money Theory Quiz 1 quiz contains 15 multiple choice questions designed to help you revise and test your A level Money Theory Quizzes knowledge. Select an answer for each question and click “Submit Answer” to see instant feedback. Take your time and try to score as high as possible!

Description

In this economics quiz, we shall be looking at money theory. Under money theory, we will be exploring some exciting concepts such as currency, the types of money, the functions of money, cash reserve ratio (CRR), etc. It is really going to be an exciting activity answering this quiz.

Money is an economic unit that generally functions as a recognized medium of exchange for transactional purposes in an economy. It is commonly referred to as currency, and each government has its own money system. Nowadays, cryptocurrencies are being developed for financing and also for international exchange across the world. In order to be useful as money, a currency should be durable, fungible, recognizable, portable, and of course stable. Money functions as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment. Also, money exists in various types such as fiduciary money, commodity money, fiat money, and commercial bank money.

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Progress0 / 15 answered
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Question 1 of 15

 Which among the following is considered to be the most liquid asset? 

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Question 2 of 15

 The number of times a unit of money exchanges hands during a unit period of time is known as: 

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Question 3 of 15

  Currency notes and coins are called as: 

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Question 4 of 15

 In the terminology of economics and money demand, the terms M1 and M2 are also known as : 

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Question 5 of 15

 In the terminology of economics and money demand, the terms M3 and M4 are also known as : 

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Question 6 of 15

 What is the reserve deposit ration (rdr)? 

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Question 7 of 15

  What is the Cash Reserve Ratio (CRR)?

a) the fraction of the deposits that commercial banks lend to the customers
b) the fraction of the deposits that RBI must keep with commercial banks
c) the fraction of the deposits that commercial banks must keep with RBI
d) none of the above 

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Question 8 of 15

 Which of the following shows the meaning of the term M3? 

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Question 9 of 15

 Which of the following is money proper? 

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Question 10 of 15

  M1 = _________ + Deposits with public 

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Question 11 of 15

 Which of the following will not come under narrow money? 

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Question 12 of 15

 M2 is defined as: 

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Question 13 of 15

 The issue of one rupee currency note in India is the liability of the: 

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Question 14 of 15

 Bills of exchange are sometimes known as: 

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Question 15 of 15

 Which of the following measures of money supply is considered narrow concept of money supply?