The Money Evolution Quiz
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Questions and Answers

Which economist defined money as 'anything which is widely accepted in payments for goods or in discharge of other kinds of business obligations'?

  • Juno Moneta
  • Walker
  • Robertson (correct)
  • Seligman

    • According to Seligman's definition, what is money?

  • Anything which is widely accepted in payments for goods or in discharge of other kinds of business obligations (correct)
  • The name of Goddess 'Juno Moneta'
  • Built on scarce/valuable natural resources
  • What money does

    • What is the oldest type of money?

  • Fiduciary Money
  • Fiat Money
  • Commercial Bank Money
  • Commodity Money (correct)

    • Which component of money supply is created by commercial banks?

    <p>Derived deposits</p> Signup and view all the answers

    What is the term used to describe the deposits created by commercial banks?

    <p>Secondary deposits</p> Signup and view all the answers

    What does Gresham's law mean when it says 'cheap money drives out dear money'?

    <p>Less valuable money replaces more valuable money</p> Signup and view all the answers

    According to Gresham's law, what happens when bad money and good money circulate together?

    <p>Bad money drives out good money</p> Signup and view all the answers

    What is the main source of credit creation for commercial banks?

    <p>Primary deposits</p> Signup and view all the answers

    What does the Quantity Theory of Money explain?

    <p>The relationship between quantity of money and price level of the economy</p> Signup and view all the answers

    According to Gresham's law, what happens when bad money and good money circulate together?

    <p>Good money is driven out of circulation</p> Signup and view all the answers

    What does the Quantity Theory of Money explain?

    <p>The relationship between quantity of money and price level of economy</p> Signup and view all the answers

    Which economist gave an equation to determine the value of money in the Quantity Theory of Money?

    <p>Irving Fisher</p> Signup and view all the answers

    Which equation is mentioned in the text?

    <p>Fisher's equation</p> Signup and view all the answers

    What does the text say about the process of spending money?

    <p>No one spends money</p> Signup and view all the answers

    What does the text say about Fisher's equation?

    <p>It is an abstract and mathematical truism</p> Signup and view all the answers

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