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MCQ with answer on Money Supply
Macro Economics: MCQs: Supply of Money Q1. Money supply viewed as POINT OF TIME is known as: A. Flow concept B. Stock of money C. Liquid money D. Near money Ans: B Q2. When money is viewed OVER A PERIOD OF TIME, it is known as A. Flow concept of money B. Stock of money C. Liquid money D. Solid money Ans: A Q3. According to RBI, M1 is equal to: A. C+DD+OD B. C+DD C. C+OD D. C+TD Ans: A Q4. According to RBI, M2 is equal to: A. C+DD+OD B. M1+TD C. C+DD D. M1+ Saving deposits of Post office Ans: D Q5. Deficit financing always leads to: A. An increase in money supply B. Reduction in money supply C. No impact on money supply D. Restrictive money supply Ans: A
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