M.A.(Economics) (Semester (CBCS) Examination, 2017
MONETARY ECONOMICS
Day Date: Wednesday, 19-04-2017 Max. Marks: 70
Time:02:30 PM to 05.00 PM
N.B. All questions are compulsory.
2 Right side digit indicate marks.
Q.1 Select the correct answer. 14
Presently In India system is used for the printing of the
currency.
Gold Standard Reserve Minimum Reserve
Proportional reserve All of the above
Anything which the state declares as a medium of exchange is known

Money Gold Yen Euro
Narrow money is
M1 M2 M3 All the above
M4 is
M1 Post office saving M3 All post office saving
M2 Post office saving None of the above
According to Fisher PT
MV MS MT MN
According to Keynes Transaction Demand for money and the level of
income has relation.
Positive Negative Neutral Constant
Liquidity trap is given by the
JM Keynes Allan Fisher
Dr. Marshal James Tobbin
IS represents
Saving= Investment Income and Saving
Interest= Saving None of the above
The combined effect of Multiplier and Accelerator is known as
Acceleration effect Multiplier effect
Super Multiplier GDP
10) The quantum of multiplier effect is depend on
Page 2 of 3
Consumption expenditure Average propensity to consume
Marginal propensity to come None of the above
11) are the quantitative measure of monetary policy.
Bank rate Open market operation
CLR and SLR All the above
12) The movement of economy from depression to prosperity is known
as
Inflation Deflation
Recovery None of the above
13) Waves like fluctuation in economic activity is known as
Economic Cycle Trade Cycle
Inflation Deflation
14) According Schumpeter trade cycle is the outcome of
Natural and market rate of interest
Demand and supply of loan able fund
Demand and supply of money
None of the above
Q.2 Write short notes of the following: (any four) 12
Fiat Money
Components of Money Supply
Gold Standard Reserve System
Marginal Efficiency of Capital
Q.3 Write short answer of the following: (any four) 16
What is Bit coin?
What is High Powered Money?
What is marginal propensity to consume?
What is leverage effect?
What is recession?
Q.4 Answer any two of the following: 14
Explain the evolution of money?
Explain the How trey's theory of trade cycle.
Discuss the loanable fund theory of interest.
Q.5 If the MPC is 0.5 percent and investment is 2000cr then computes
the multiplier effect.
14
OR
Co mpute the APC,MPC,APC and MPS and draw the incomeconsumption
line.
Income

Consumption

APC MPC APS MPS
Rs. 1000 Rs.1800
Rs.2000 Rs.2000
Rs.3000 Rs.2200
Rs.4000 Rs.2400
Rs.5000 Rs.2600
Rs.6000 Rs 2800