MCQ with answer on Money Supply

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 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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