Plus Two / 12th Economics - Book Back Answers - Chapter 5 - English Medium
Chapter 5: Monetary Economics
Tamil Nadu Board 12th Standard Economics - Chapter 5: Book Back Answers and Solutions
This post covers the book back answers and solutions for Chapter 5 from the Tamil Nadu State Board 12th Standard Economics textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.
We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.
By going through this material, you’ll gain a strong understanding of Chapter 5 along with the corresponding book back questions and answers (PDF format).
Question Types Covered:
- 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following
- 2 Mark Questions: Answer briefly
- 3, 4, and 5 Mark Questions: Answer in detail
All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.
All the best, Class 12 students! Prepare well and aim for top scores. Thank you!
Chapter 5: Monetary Economics
I. Choose the correct answer.
1. The RBI Headquarters is located at
(a) Delhi
(b) Chennai
(c) Mumbai
(d) Bengaluru
Answer Key:
(c) Mumbai
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
Answer Key:
(c) the most liquid of all assets
3. Paper currency system is managed by the
(a) Central Monetary authority
(b) State Government
(c) Central Government
(d) Banks
Answer Key:
(a) Central Monetary authority
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
Answer Key:
(b) saving deposits with post office savings bank
5. Irving Fisher’s Quantity Theory of Money was popularized in
(a) 1908
(b) 1910
(c) 1911
(d) 1914.
Answer Key:
(c) 1911
6. MV stands for
(a) demand for money
(b) supply of legal tender money
(c) Supply of bank money
(d) Total supply of money
Answer Key:
(b) supply of legal tender money
7. Inflation means
(a) Prices are rising
(b) Prices are falling
(c) Value of money is increasing
(d) Prices are remaining the same
Answer Key:
(a) Prices are rising
8. _________ inflation results in a serious depreciation of the value of money.
(a) Creeping
(b) Walking
(c) running
(d) Hyper
Answer Key:
(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
Answer Key:
(a) Cost-push
10. During inflation, who are the gainers?
(a) Debtors
(b) Creditors
(c) Wage and salary earners
(d) Government
Answer Key:
(a) Debtors
11. ___________ is a decrease in the rate of inflation.
(a) Disinflation
(b) Deflation
(c) Stagflation
(d) Depression
Answer Key:
(a) Disinflation
12. Stagflation combines the rate of inflation with
(a) Stagnation
(b) employment
(c) output
(d) price
Answer Key:
(a) Stagnation
13. The study of alternating fluctuations in business activity is referred to in Economics as
(a) Boom
(b) Recession
(c) Recovery
(d) Trade cycle
Answer Key:
(d) Trade cycle
14. During depression the level of economic activity becomes extremely
(a) high
(b) bad
(c) low
(d) good
Answer Key:
(c) low
15. “Money can be anything that is generally acceptable as a means of exchange and that the same 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
Answer Key:
(a) Crowther
16. Debit card is an example of
(a) currency
(b) paper currency
(c) plastic money
(d) money
Answer Key:
(c) plastic 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
Answer Key:
(c) medium of exchange
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
Answer Key:
(b) Velocity of circulation of money
19. When prices rise slowly, we call it
(a) galloping inflation
(b) mild inflation
(c) hyper inflation
(d) deflation
Answer Key:
(b) mild inflation
20. __________ inflation is in no way dangerous to the economy.
(a) walking
(b) running
(c) creeping
(d) galloping
Answer Key:
(c) creeping
(a) Delhi
(b) Chennai
(c) Mumbai
(d) Bengaluru
Answer Key:
(c) Mumbai
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
Answer Key:
(c) the most liquid of all assets
3. Paper currency system is managed by the
(a) Central Monetary authority
(b) State Government
(c) Central Government
(d) Banks
Answer Key:
(a) Central Monetary authority
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
Answer Key:
(b) saving deposits with post office savings bank
5. Irving Fisher’s Quantity Theory of Money was popularized in
(a) 1908
(b) 1910
(c) 1911
(d) 1914.
Answer Key:
(c) 1911
6. MV stands for
(a) demand for money
(b) supply of legal tender money
(c) Supply of bank money
(d) Total supply of money
Answer Key:
(b) supply of legal tender money
7. Inflation means
(a) Prices are rising
(b) Prices are falling
(c) Value of money is increasing
(d) Prices are remaining the same
Answer Key:
(a) Prices are rising
8. _________ inflation results in a serious depreciation of the value of money.
(a) Creeping
(b) Walking
(c) running
(d) Hyper
Answer Key:
(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
Answer Key:
(a) Cost-push
10. During inflation, who are the gainers?
(a) Debtors
(b) Creditors
(c) Wage and salary earners
(d) Government
Answer Key:
(a) Debtors
11. ___________ is a decrease in the rate of inflation.
(a) Disinflation
(b) Deflation
(c) Stagflation
(d) Depression
Answer Key:
(a) Disinflation
12. Stagflation combines the rate of inflation with
(a) Stagnation
(b) employment
(c) output
(d) price
Answer Key:
(a) Stagnation
13. The study of alternating fluctuations in business activity is referred to in Economics as
(a) Boom
(b) Recession
(c) Recovery
(d) Trade cycle
Answer Key:
(d) Trade cycle
14. During depression the level of economic activity becomes extremely
(a) high
(b) bad
(c) low
(d) good
Answer Key:
(c) low
15. “Money can be anything that is generally acceptable as a means of exchange and that the same 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
Answer Key:
(a) Crowther
16. Debit card is an example of
(a) currency
(b) paper currency
(c) plastic money
(d) money
Answer Key:
(c) plastic 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
Answer Key:
(c) medium of exchange
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
Answer Key:
(b) Velocity of circulation of money
19. When prices rise slowly, we call it
(a) galloping inflation
(b) mild inflation
(c) hyper inflation
(d) deflation
Answer Key:
(b) mild inflation
20. __________ inflation is in no way dangerous to the economy.
(a) walking
(b) running
(c) creeping
(d) galloping
Answer Key:
(c) creeping
II.Answer the following questions.
12th Economics (soon)
III. Answer the following questions.
12th Economics (Soon)
IV. Answer the following questions.
12th Economics (Soon)
0 Comments:
Post a Comment