Chapters
Chapter 2: National Income
Chapter 3: Theories of Employment and Income
Chapter 4: Consumption and Investment Functions
Chapter 5: Monetary Economics
Chapter 6: Banking
Chapter 7: International Economics
Chapter 8: International Economic Organisations
Chapter 9: Fiscal Economics
Chapter 10: Environmental Economics
Chapter 11: Economics of Development and Planning
Chapter 12: Introduction to Statistical Methods and Econometrics
Chapter 5: Monetary Economics
Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Economics Answers Guide Chapter 5 Monetary Economics Model Questions [Pages 91 - 93]
Part A - Multiple Choice Questions
The RBI Headquarters is located in ______.
Delhi
Chennai
Mumbai
Bengaluru
Money is ______.
acceptable only when it has intrinsic value
constant in purchasing power
the most liquid of all assets
needed for the allocation of resources
The paper currency system is managed by the ______.
Central Monetary authority
State Government
Central Government
Banks
The basic distinction between M1 and M2 is with regard to.
post office total deposits
saving deposits with post office savings bank
Terms deposits of banks
currency
Irving Fisher’s Quantity Theory of Money was popularized in ______.
1908
1910
1911
1914
MV stands for the ______.
demand for money
supply of legal tender money
Supply of bank money
Total supply of money
Inflation means ______.
Prices are rising
Prices are falling
The value of money is increasing
Prices are remaining the same
__________ inflation results in a serious depreciation of the value of money.
Creeping
Walking
running
Hyper
__________ inflation occurs when the general prices of commodities increase due to an increase in production costs such as wages and raw materials.
Cost-push
demand-pull
running
galloping
During inflation, who are the gainers?
Debtors
Creditors
Wage and salary earners
Government
____________ is a decrease in the rate of inflation.
Disinflation
Deflation
Stagflation
Depression
Stagflation combines the rate of inflation with ______.
Stagnation
employment
output
price
The study of alternating fluctuations in business activity is referred to in Economics as the ______.
Boom
Recession
Recovery
Trade cycle
During depression the level of economic activity becomes extremely ______.
high
bad
low
good
“Money can be anything that is generally accepted as a means of exchange and that the same time acts as a measure and a store of value”, This definition was given by ______.
Crowther
A.C.Pigou
F.A.Walker
Francis Baco
The debit card is an example of ______.
currency
paper currency
plastic money
money
Fisher’s Quantity Theory of money is based on the essential function of money as a ______.
measure of value
store of value
medium of exchange
standard of deferred payment
V in MV = PT equation stands for ______.
Volume of trade
Velocity of circulation of money
Volume of transaction
Volume of bank and credit money
When prices rise slowly, we call it ______.
galloping inflation
mild inflation
hyper inflation
deflation
__________ inflation is in no way dangerous to the economy.
walking
running
creeping
galloping
Part B - Answer the following questions in one or two sentences
Define Money.
What is barter?
What is commodity money?
What is the gold standard?
What is plastic money? Give example.
Define inflation.
What is Stagflation?
Part C - Answer the following questions in one paragraph
Write a note on metallic money.
What is money supply?
What are the determinants of money supply?
Write the types of inflation.
Explain Demand-pull and Cost-push inflation.
State Cambridge equations of the value of money.
Explain disinflation.
Part D - Answer the following questions in about a page
Illustrate Fisher’s Quantity theory of money.
Explain the functions of money.
What are the causes and effects of inflation on the economy?
Describe the phases of Trade cycle.
Chapter 5: Monetary Economics
Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Economics Answers Guide chapter 5 - Monetary Economics
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Concepts covered in Class 12th Economics Answers Guide chapter 5 Monetary Economics are Monetary Economics, Money, Meaning of Supply of Money, Quantity Theories of Money, Inflation, Meaning of Deflation, Disinflation and Stagflation, Trade Cycle.
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