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61.

If quantity of money is doubled, then according to Quantity Theory, value of money is:

Remains constant

Doubled

62.

Inflation can be controlled by applying:

A.	Monetary and fiscal policies	B.	Monetary and labour policy
C.	Fiscal and commercial policies	D.	All of the above

63.

Inflation is a situation when :

A.	Prices of some goods rise	B.	General price level rises continuously
C.	Prices double every year	D.	Prices rise and fall

64.

Under normal circumstances, the velocity of circulation of money in a country is:

A.	100%	B.	Negative
C.	Less than 10	D.	Zero

65.

In Pakistan, in the year 2007-08, money supply was about

A.	Rs. 3400 million	B.	Rs. 3400 billion
C.	Rs. 3400 trillion	D.	Uncountable

66.

Banks discount it and advance loans:

A.	Draft	B.	Bill of exchange
C.	Pay order	D.	Gold

67.

Paper money is called fiat money because

A.	It is issued with authority of government	B.	It is convertible into gold
C.	It can be easily printed	D.	It is light weight

68.

According to Keynes, demand for money is affected by:

A.	Income	B.	Rate of interest
C.	Literacy rate	D.	Both (a) & (b)

69.

During inflation:

A.	Lenders lose, borrowers gain	B.	Borrowers lose, lenders gain
C.	Borrowers and lenders both lose	D.	All sections of the society gain

70.

The quantity demanded of money rises:

A.	As the interest rises	B.	As the interest rate falls
C.	As the supply of money falls	D.	As the number of banks rises