Monetary System MCQ 2019


Sant Gadge Baba Amaravati University, Amravati 

Monetary System MCQ 2019 B.Com 3rd semester 


Very Important Question :- Impact of demonetisation on Indian Economy Click here to read.



 1. The process of exchanging goods is known as _______

1. Barter Exchange

2. Currency Exchange

3. Foreign Exchange

4. None of the above.



2. _______is known as feature of money.

1. Transferable 

2. Exchange

3. Purchasing Power

4. All of the above.


3. Bitcoin is_________ Currency.

1. Paper 

2. Metallic

3. Commodity

4. Virtual


4. The first demonetisation was took place in the year______ .

1. 1946

2. 1978

3. 1991

4. 2016


5. According to classical economists ________.

1. There is no direct demand for money.

2. There is direct demand for money.

3. There is no demand for money.

4. All of the above.

6. According to Fisher there is only one usage of money and that is_____.

1. Store value of money.

2.  Medium of exchange 

3. Deferred Payments 

4. None of the above.


7. Quantity of money and price level are_________ related.

1. Evenly 

2. Inversely

3. Indifferently

4. None of the above



8. _______ this factor of Fisher's Quantity theory is considered as inactive.

1. M 

2. P 

3. T 

4. None of the above



9. Continuous rise in the prices of product and services is_____

1. Inflation

2. Deflation

3. Disinflation 

4. Stagflation


10. Which of the following is not the reason of deflation.

1. Contraction of credit

2. Increase in taxes 

3. Increase in Exports 

4. Increase in imports



11. There are ______ stages of trade cycle.

1. Three 

2. Four

3. Six 

4. None of the above




12. Contraction of money supply in an economy is ______

1. Inflation

2. Deflation

3. Currency equilibrium

4. None of the above



13. Money market is related with _______ duration.

1. Short term 

2. Long term

3. Very long term 

4. None of the above



(14) Financial market is mainly classified in_____ Classes.

(a) Three

(b) Four

 (c) Two

(d) None of the above 



(15) Which of the following factor is not included in an unorganised sector of India money market?

1. Moneylender

2. Broker

3. Jewellers firm 

4. Commercial Bank




16. _______is the function of money market.

(a) Short term exchange of loans

(b) Assistance in capital formation

(c) Assistance to Government in raising finance

(d) All of the above


(17) Capital Market is related with ________ duration.

(a) Very short-term

(b) Short-term

(c) Long-term

(d) None of the above


(18) SEBI was established in the year_____.

(a) 1991

(b) 1992

(c) 1988 

(d) None of the above


(19) Headquarter of SEBI is located at______

(a) Calcutta

(b) Delhi

(c) Mumbai

(a) None of the above


(20) Transactions of long-term exchange of loans took place in market.

(a) Money

(b) Capital

(c) Money and Capital

(d) None of the above 













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