Question # 1

Under normal circumstances the velocity of circulation of money in a contry is.

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100%

negative

Less than 10

Zero

Velocity of circulation of money means.

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Total demand for money

Annual increase in currency notes

Number of timesa unit of money changes hands

total supoly of money

Value of money and supply of money are related.

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Inversely

Directly

Govt.Law

Are not related

Banks discount it and adance loans.

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Draft

Bill of Exchange

pay order

Gold

Drung inflation

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Lenders lose borrowers gain

Borrowers and lenders both ose

Borrows lose lenders gain

All sections of the society gain

Value of money in pakistan in determined by

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Govt of Pakistan

General Price Level

State Bank Pakistan

Value of Dollar

When the nations money supply is Rs. 1200 million and GDP is Rs. 4800 billion. velocity of circulation money is.

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0.25

4

0.4

Billion Rupees

The quantity demanded of money rises.

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As the intrest rate falls

As the intrest rate rises

As the supply of money falls

As the number of banks rises

According to keynes demand for money is affected by

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Income

Rate of intest

Literacy rate

a and b of above

It is assumption of quantity theory of money

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Velocity of circulation of money constant

Affects only industrial sector

Makes distribution of national income better

Has no effect on distribution of income

They are NOT much affected by rising prices.

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Salaried persons

Business

Debtors

Importers

When value of money falls, they benefits more

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Debtors

Lenders

Farmers

Industrialist

According to Keynes people demand money for purposes .

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1

2

3

4

The equation of exchange PT =MV was given by

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Fisher

Crowther

Kuznet

Keynes

Value of circulation money means by number of times a unit of money

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Change hands daily

Change hand annually

change hands montly

Change purchacing power

For the economy prices are beneficial

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Falling slowly

Rising slowly

Rising fast

Falling fast

Value of money means

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General purchasing power of money

Gold purchased by money

Demand for money

Importance of money

Pursching power of money during defiation is.

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Increased

Reduced

Constant

Fluctuating

If we put this letter in the blank space we get quantity theory of money PY =M

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S

T

V

A

Which One is equation of exchange.

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PT = MV

PV = MT

PM = TV

None

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