Question : Due to which of the following reasons can money be differentiated from other physical assets that can perform the function of store of value?
Option 1: Money has common acceptability
Option 2: Money possesses liquidity
Option 3: Money is neutral
Option 4: Money is easy to store
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Correct Answer: Money is easy to store
Solution : The correct option is Money is easy to store.
Money can be differentiated from other physical assets that can serve as a store of value because it is easy to store. Unlike some physical assets like real estate, precious metals, or commodities, money does not require significant storage space, special conditions, or maintenance.
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Question : The measures of money supply, namely, M1, M2, M3 and M4, in this order, indicate:
Option 1: decreasing order of earning
Option 2: increasing order of liquidity
Option 3: decreasing the order of liquidity
Option 4: decreasing order of store of value
Question : It is possible to derive the value of the Gross Domestic Product (GDP) of a country. Which function of money is applicable here?
Option 1: Store of value
Option 2: Unit of account
Option 3: Standard of deferred payments
Option 4: Medium of exchange
Question : The velocity of circulation of money is _______.
Option 1: k times the value of transactions
Option 2: the number of times a unit of money changes hands during the unit period
Option 3: the number of times the same transactions can be repeated by a given volume of money supply
Option 4: the ratio of money balance to the value of transactions
Question : What is meant by "Capital Gains"?
Option 1: Part of the profits added to the capital
Option 2: Appreciation in the money value of assets
Option 3: Additions to the capital invested in a business
Option 4: None of these
Question : Heart attack occurs due to
Option 1: bacterial attack on the heart
Option 2: stopping of heart beat
Option 3: lack of supply of blood to the heart itself
Option 4: impairment of heart's working due to unknown reasons
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