Monetary Policy of Economics MCQs

Try to answer these 60 Monetary Policy of Economics MCQs and check your understanding of the Monetary Policy of Economics subject.
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1: In which market the money demand and money supply determine the equilibrium interest rate?

A. Clothes market

C. Interest market

2: Quantity theory of money and prices states the hypothesis that changes in the money supply lead to ____proportional changes in the price level

3: A measure of how frequently money is turned over is called

A. Velocity of money

B. Frequency of money

C. Acceleration of money

4: A decrease in the demand for money will shift the money demand curve ______.

5: Money market equilibrium occurs at which of the following?

A. The real interest rate where the quantity of money demanded equals the quantity of money supplied

B. The nominal rate where the quantity of money demanded equals the quantity of money supplied

C. The real interest rate where the quantity of money demanded is less than the quantity of money supplied

D. The nominal interest rate where the quantity of money demanded is more than the quantity of money supplied