12th Economics Book Back Question and Answer Tamil Medium & English Medium

Note:

  • 12th std samacheer Kalvi NCERT ECNOMICS BOOK BACK Question and answers .
  • 12th economics Katrathukalvi Kalvi guide Answers based on new syllabus.
  • These Study materials help for your Board examination.
  • You can get good marks your board examination.
  • 12th Economics Important 2 mark questions
  • 12th Economics important 3 mark questions
  • 12th economics important 5 Mark questions.

12th Economics Book Back Question and Answer Tamil Medium & English Medium

Chapter 5 Monetary Economics


Monetary Economics is a branch of economics that provides a framework for analyzing money and its functions as a medium of exchange, store of value and unit of account. It examines the effects of monetary systems including regulation of money and associated financial institutions.



Money Definitions

        Many economists developed definition for money. Among these, definitions of Walker and Crowther are given below:“ Money is, what money does”

 - Walker.

“Money can be anything that is generally acceptable as a means of exchange and at the same time acts as a measure and a store of value”.

–Crowthre


1. The RBI Headquarters is located at
(a) Delhi
(b) Chennai
(c) Mumbai
(d) Bengaluru

2. Money is
(a) acceptable only when it has intrinsic 
value
(b) constant in purchasing power
(c) the most liquid of all assets
(d) needed for allocation of resources

3. Paper currency system is managed by 
the
(a) Central Monetary authority 
(b) State Government
(c) Central Government 
(d) Banks 

4. The basic distinction between M1
and M2
 is with regard to .
(a) post office total deposits
(b) saving deposits with post office 
savings bank
(c) Terms deposits of banks
(d) currency

5. Irving Fisher’s Quantity Theory of 
Money was popularized in
(a) 1908
(b) 1910
(c) 1911
(d) 1914.

6. MV stands for
(a) demand for money 
(b) supply of legal tender money
(c) Supply of bank money
(d) Total supply of money

7. Inflation means
(a) Prices are rising
(b) Prices are falling
(c) Value of money is increasing 
(d) Prices are remaining the same

8. __________ inflation results in a serious 
depreciation of the value of money. 
(a) Creeping
(b) Walking
(c) running
(d) Hyper

9. __________ inflation occurs when 
general prices of commodities increases 
due to increase in production costs 
such as wages and raw materials.
(a) Cost-push
(b) demand pull
(c) running
(d) galloping

10. During inflation, who are the gainers?
(a) Debtors
(b) Creditors
(c) Wage and salary earners
(d) Govgalloping

11. ____________ is a decrease in the rate 
of inflation.
(a) Disinflation
(b) Deflation
(c) Stagflation
(d) Depression

12. Stagflation combines the rate of 
inflation with
(a) Stagnation
(b) employment
(c) output
(d) price

13. The study of alternating fluctuations 
in business activity is referred to in 
Economics as
(a) Boom
(b) Recession
(c) Recovery
(d) Trade cycle

14. During depression the level of 
economic activity becomes extremely
(a) high
(b) bad
(c) low
(d) good

15. “Money can be anything that is 
generally acceptable as a means of 
exchange and that thesame time acts 
as a measure and a store of value”, This 
definition was given by 
(a) Crowther 
(b) A.C.Pigou
(c) F.A.Walker
(d) Francis Bacon 

16. Debit card is an example of 
(a) currency
(b) paper currency
(c) plastic money
(d) money 

17. Fisher’s Quantity Theory of money 
is based on the essential function of 
money as 
(a) measure of value
(b) store of value
(c) medium of exchange
(d) standard of deferred payment

18. V in MV = PT equation stands for 
(a) Volume of trade
(b) Velocity of circulation of money
(c) Volume of transaction
(d) Volume of bank and credit money 

19. When prices rise slowly, we call it
(a) galloping inflation
(b) mild inflation
(c) hyper inflation
(d) deflation

20. ___________ inflation is in no way 
dangerous to the economy.
(a) walking
(b) running
(c) creeping
(d) galloping

Part – B
Answer the following questions in one or two sentences.
21. Define Money.
22. What is barter?
23. What is commodity money?
24. What is gold standard?
25. What is plastic money? Give example.
26. Define inflation.
27. What is Stagflation?
Part – C
Answer the following questions in one paragraph.
28. Write a note on metallic money.
29. What is money supply?
30. What are the determinants of money supply?
31. Write the types of inflation.
32. Explain Demand-pull and Cost push inflation. 
33. State Cambridge equations of value of money.
34. Explain disinflation.
Part – D
Answer the following questions in about a page
35. Illustrate Fisher’s Quantity theory of money.
36. Explain the functions of money.
37. What are the causes and effects of inflation on the economy?
38. Describe the phases of Trade cycle.