Public Finance-Online Practice Exam 15
Public Finance-Online Practice Exam 15

Public Finance-Online Practice Exam 15

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 15

Question

1. Money supply is a

Answers

Flow concept

Stock concept

Both of the above

None of these

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Question

2. Increase in monetary deficit will lead to in crease in

Answers

Money demand

High powered money

Saving

Export

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Question

3. Inflationary expectations will lead to

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Rise in velocity of money 

Fall in velocity of money 

Constant velocity of money

Can’t say with certainty

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Question

4. Coins are issued by

Answers

RBI

Central government 

Local government 

State government

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Question

5. Notes are issued by

Answers

RBI

Central government

Local government

State government

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Question

6. Hoarding of money leads to

Answers

Decrease in money

Increase in money supply

Constant money supply 

Can’t say with certainty

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Question

7. If high powered money increases by 10%, then money supply will increase by 

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10%

More than 10%

Less than 10%

Can’t say with certainty

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Question

8.  Which of the following is a function of money?

Answers

 Medium of exchange

Store of value

Transfer of value

All of these

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Question

9. Classicals ignored

Answers

Speculative motive

Transaction motive

Precautionary motive

None of the above

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Question

10. High powered money is controlled by

Answers

Business

Government

Public

None of the above

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