Quantity Theory Of Money (fisher Equation) Jamb Economics Past Questions
Question 1
Fiduciary issue is that part of?
- A. the issue of notes backed entirely by gold
- B. a country's currency that is not negotiable
- C. the issue of notes not backed by gold
- D. a country's currency officially issued
Question 2
The second equation of exchange is__________
- A. MV = PT
- B. P = \(\frac {M}{KR}\)
- C. P = \(\frac {MV}{T}\)
- D. P=MV
Question 3
The price index is calculated as
- A. \(\frac{\text{weighted price}}{\text{current price}} x \frac{100}{1}\)
- B. \(\frac{\text{base year price}}{\text{current price}} x \frac{100}{1}\)
- C. \(\frac{\text{current price}}{\text{weighted price}} x \frac{100}{1}\)
- D. \(\frac{\text{current price}}{\text{base year price}} x \frac{100}{1}\)
Question 4
The velocity of money is represented as
- A. \(\frac{\text{Money supply}}{\text{Real GDP}}\)
- B. \(\frac{\text{Real GDP}}{\text{Money supply}}\)
- C. \(\frac{\text{Nominal GDP}}{\text{Money supply}}\)
- D. \(\frac{\text{Real GDP}}{\text{Nominal GDP}}\)
Question 5
The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
- A. A constant change in price
- B. A rise in prices
- C. An unequal fall in prices
- D. A proportionate fall in price
