List of top Economics Questions on Money Supply

Which of the following is a potential benefit of a fixed exchange rate system?
Which of the following statements accurately describe the nature of Fiat and Fiduciary money?
A. Fiat money has no intrinsic value and is not backed by physical commodities.
B. Fiduciary money's value is solely based on a government order.
C. Examples of fiduciary money include checks and promissory notes.
D. Fiat money is always redeemable for gold or silver.
With valid reasons, classify the following into Capital Receipts or Revenue Receipts of the government: Dividend received by the government from a Maharatna company. Receipts of the government from the sale of shares of a Public Sector Undertaking (PSU) in the open market. Debt cleared by the Sri Lanka Government to the Indian Government.
Suppose, the Indian Government decides to boost public investments with a defence project of Rupees \(40,000\) crore. Explain the likely impacts of the given situation on the Income, Employment, and Output of the economy, assuming all other factors constant.
Identify the it{incorrect feature(s) of the Money Supply in an economy, from the following:}

(i) It is measured during a period of time.
(ii) It includes stock of money held by the government of a nation.
(iii) It always represents the currency held with the Central Bank of the nation.