Category: General Knowledge MCQs

Latest multiple choice questions of general knowledge.

General Knowledge MCQs [Quiz 56]

Q1. By value of money is meant?
(a) Power of a good to command other things in exchange
(b) Power of money to command goods and services in exchange
(c) Power of a currency note to command coins in exchange
(d) Power of money to command foreign currency.

Q2. According to “Tausing”:
(a) Double the quantity of money and other things, being equal, the prices will be twice as high as before and value of money one half
(b) Double the quantity of money and value of money will double
(c) Double the quantity of money and other things remaining the same the prices will be half of what they werea before and value of money will be double as before
(d) None of the above

Q3. “Inflation’. means that money:
(a) Rises in value
(b) Falls in value
(c) Become scarce
(d) becomes larger in denomination

Q4. “Inflation” may be defined an
(a) Rapidly increasing prices M a certain sector or industry
(b) A temporary increases in the prices of several goods
(c) A general and consistent increase in prices in an economy
(d) Too little money choosing too many goods

Q5. Which of the following statement is true?
(a) Devaluation causes an increase in the value of money
(b) Fixed income groups are benefited by increase in prices
(c) A decrease in production brings a decrease in the value of money
(d) None of the above

Q6. Which of the following groups is most likely to benefit from inflation?
(a) Exporters
(b) Debtors
(c) Pensioners
(d) Creditors

Q7. Which of the following must be a result of inflation?
(a) Higher interest rates
(b) A rise in the exchange rate
(c) An increase in the value of money
(d) A reduction in the value of money

Q8. Can money perform the following functions?
(a) To compare the value of goods
(b) To act as medium of exchange
(c) Both of the above
(d) None of the above

Q9. Which of the following will be described as “cost push” inflation?
(a) An increase in imported oil prices
(b) An increase in money supply
(c) An increase in unemployment allowances
(d) A reduction in income tax.

Q10. Which of the following statement is false?
(a) Inflation brings an increase in production
(b) Inflation makes savings increase
(c) The main cause of inflation in Pakistan is deficit fmancing and excessive increase in money supply
(d) None of the above

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