Multiple Choice Write the letter of the best answer 1 What does too much money chasing too few goods mean increased demands for goofs Demands of goods is high but the supply is low Demands of goods is likely to increase of prices Supply of goods is low with high amount of money in circulation 2 How can the government combat inflation Encourage consumption spending Increase availability of loans Creditors are encouraged to lend money Implementation of government price support programs 3 Which of the following defines inflation A continuous increase in price Measures change in retail price Prices shoot up sharply at excessive high rates Prices rise because of expenses demand for goods 4 Which is not a determinant of demand pull inflation A greater demand for commodities B government high expenditures C increase taxes D high amount of money 5 Which of the following conditions inflation is not resent High purchasing power of money High amount of money in circulation Fixed income earners suffer decrease in value of wages Increase price level 6 Who are not gainers during inflationary situations Businessmen C pensioner lender D employees with fixed income 7 How inflation affects the nation's economy Economic welfare of employees with fixed income diminished Full employment Price stability Aggregate demand is equal to aggregate supply 8 Which of the following is a positive effect of inflation on an economy Decease in the real value of money High purchasing power of money Debt relief by reducing the real level of debt Shortages of goods 9 How Consumer Price Index (CPI) is measured CPI CPI in current year CPI in previous year CPI in previous year CPI CPI in previous year CPI in Current year CPI in previous year CPI CPI in previous year CPI in current year CPI in previous year CPI CPI in current year CPI in previous year CPI in previous year 10 The prices of a commodity in 2019 and 2020 were 450 and 850 respectively What is the price relative (PR) in 2020 188 89 B 188 89 C 1 88889 D 1 88889 11 It pushes prices up due to the increase in the cost of production Demand pull inflation C Hyperinflation Cost push inflation D Inflation 12 Prices shoot up sharply at excessively high rates A Demand pull inflation C Hyperinflation B Cost push inflation D Inflation 13 It is designed to measure monthly changes of the prices at which retailers dispose of their goods to consumers and end users RPI B CPI C WPI D UPI 14 Peso is worth less than a dollar devaluation B deflation C inflation D Hyperinflation 15 A gainer because the money he borrowed increases in value Creditor B debtor C Speculator D pensioner 16 It refers to as good as money intended for spending Bills B coins C credit card D checks 17 Which of the following is the main reason that makes money important allows it in circulation C medium of exchange paying debt D Exchange rates 18 Which of the following is the main function of banks Deposits B Savings C Loans D Exchange rates 19 Which of the following determines the increase on the money supply Restrictive monetary policy C Lower reserve requirements Higher rediscount rate D Central Bank sells stocks and bonds 20 The creation of money is intended for Commercial banks to enable to lend more C Central Bank sells stocks and bonds Currency in circulation increases D A and B 21 Bank of all banks Central Bank of the Philippines C International Monetary Fund World Bank D Philippine National Bank 22 What is the biggest source of government funds OFW Remittances c Borrowing B Taxes D Relying on Foreign Aid 23 Which of the following tasks are accomplished by taxation Taxes raise money to finance government expenditures Taxes reduce private purchasing power and make real resources available to the government Taxes may change the pattern of income distribution A and C 24 How contractionary monetary policy affect the economy Deficit budget C increase budget Paying debt D stabilize the economy 25 When does deflation occurs The fluctuations in the value of money increase the price of goods The value of money increases while the prices of goods fall The value of money today will be less than tomorrow People with fixed income suffers most 26 What is the role of the Bangko Sentral ng Pilipinas It accepts savings and time deposits It pays the nation's debts It gives charity to the different organizations in need It controls the circulation of money for trade and industry 27 It is a function of the bank to transfer money to the family through remittances Lend money C accept deposiys Perform legal roles D Remit and collect money 28 No tariffs, No quotas, no currency restrictions are some examples of Mixed Free Trade C Protectionism Free Trade D Trade Diversification 29 It is an inherent power of the state to demand enforced contributions from the people for public purposes Tax B Taxation C Direct Tax D Indirect Tax 30 Which of the following is not used to measure the Gross National Product Expenditure Approach C Economic Freedom Approach Value Added approach D Income Approach 31 Which of the following has direct effect on the country's Gross Domestic product High remittance of OFW Good governance High imports and exports of goods and services Efficient use of government funds 32 In the circular flow model of the economy, how does the household and business firm's activities take place The households own the factors of production in the production of goods The money lends to the firms by the households and used as capital The households used the taxes collected in the production of goods for the business firms to use The households open a new firm to create employment 33 Mr Chan, a Chinese national is working in one of country's company Where does his income being computed Gross Domestic Product of China since he is a Chinese national Gross National Product of the Philippines since his income is coming from the Philippines Gross Domestic Product of the Philippines since his income is from the country Gross Domestic Product of the Philippines and China since his income is coming from both countries 34 How ownership of stocks be determined A By owning a corporation B By calling you investor C By buying and selling your shares D By the number of shares a person owns relative to the number of outstanding shares 35 How various amounts per day can grow into million A Savings B Time deposits C Invest in Real Estate D Invest in Stock market

Question

Multiple Choice   Write the letter of the best answer       1  What does  too much money chasing too few goods  mean  increased demands for goofs Demands of goods is high but the supply is low  Demands of goods is likely to increase of prices  Supply of goods is low with high amount of money in circulation      2  How can the government combat inflation  Encourage consumption spending Increase availability of loans Creditors are encouraged to lend money Implementation of government price support programs      3  Which of the following defines inflation  A continuous increase in price Measures change in retail price Prices shoot up sharply at excessive high rates Prices rise because of expenses demand for goods       4  Which is not a determinant of demand pull inflation  A  greater demand for commodities B  government high expenditures C  increase taxes D  high amount of money      5  Which of the following conditions inflation is not resent  High purchasing power of money High amount of money in circulation Fixed income earners suffer decrease in value of wages Increase price level      6  Who are not gainers during inflationary situations  Businessmen C  pensioner lender D  employees with fixed income      7  How inflation affects the nation's economy  Economic welfare of employees with fixed income diminished  Full employment Price stability Aggregate demand is equal to aggregate supply      8  Which of the following is a positive effect of inflation on an economy  Decease in the real value of money High purchasing power of money Debt relief by reducing the real level of debt Shortages of goods      9  How Consumer Price Index (CPI) is measured  CPI   CPI in current year   CPI in previous year CPI in previous year CPI   CPI in previous year   CPI in Current year CPI in previous year CPI   CPI in previous year CPI in current year   CPI in previous year CPI   CPI in current year CPI in previous year   CPI in previous year     10  The prices of a commodity in 2019 and 2020 were 450 and 850 respectively  What is the price relative (PR) in 2020  188 89 B  188 89  C  1 88889 D  1 88889      11  It pushes prices up due to the increase in the cost of production  Demand pull inflation C  Hyperinflation Cost push inflation D  Inflation     12  Prices shoot up sharply at excessively high rates  A  Demand pull inflation C  Hyperinflation B  Cost push inflation D  Inflation     13  It is designed to measure monthly changes of the prices at which retailers dispose of their goods to consumers and end users  RPI B  CPI C  WPI D  UPI     14  Peso is worth less than a dollar devaluation B  deflation C  inflation D  Hyperinflation     15  A gainer because the money he borrowed increases in value  Creditor B  debtor C  Speculator D  pensioner     16  It refers to as good as money intended for spending  Bills B  coins C  credit card D  checks     17  Which of the following is the main reason that makes money important  allows it in circulation C  medium of exchange paying debt D  Exchange rates     18  Which of the following is the main function of banks  Deposits B  Savings C  Loans D  Exchange rates     19  Which of the following determines the increase on the money supply  Restrictive monetary policy C  Lower reserve requirements Higher rediscount rate D  Central Bank sells stocks and bonds     20  The creation of money is intended for Commercial banks to enable to lend more C  Central Bank sells stocks and bonds Currency in circulation increases D  A and B    21  Bank of all banks Central Bank of the Philippines C  International Monetary Fund World Bank D  Philippine National Bank     22  What is the biggest source of government funds  OFW Remittances c  Borrowing B  Taxes D  Relying on Foreign Aid     23  Which of the following tasks are accomplished by taxation  Taxes raise money to finance government expenditures  Taxes reduce private purchasing power and make real resources available to the government  Taxes may change the pattern of income distribution  A and C     24  How contractionary monetary policy affect the economy  Deficit budget C  increase budget Paying debt D  stabilize the economy     25  When does deflation occurs  The fluctuations in the value of money increase the price of goods  The value of money increases while the prices of goods fall  The value of money today will be less than tomorrow  People with fixed income suffers most      26  What is the role of the Bangko Sentral ng Pilipinas  It accepts savings and time deposits  It pays the nation's debts  It gives charity to the different organizations in need  It controls the circulation of money for trade and industry       27  It is a function of the bank to transfer money to the family through remittances  Lend money C  accept deposiys Perform legal roles D  Remit and collect money      28  No tariffs, No quotas, no currency restrictions are some examples of Mixed Free Trade C  Protectionism Free Trade D  Trade Diversification     29  It is an inherent power of the state to demand enforced contributions from the people for public purposes  Tax B  Taxation C  Direct Tax D  Indirect Tax     30  Which of the following is not used to measure the Gross National Product  Expenditure Approach C  Economic Freedom Approach Value Added approach D  Income Approach     31  Which of the following has direct effect on the country's Gross Domestic product  High remittance of OFW Good governance High imports and exports of goods and services Efficient use of government funds    32  In the circular flow model of the economy, how does the household and business firm's activities take place  The households own the factors of production in the production of goods  The money lends to the firms by the households and used as capital  The households used the taxes collected in the production of goods for the business firms to use  The households open a new firm to create employment      33  Mr  Chan, a Chinese national is working in one of country's company  Where does his income being computed  Gross Domestic Product of China since he is a Chinese national Gross National Product of the Philippines since his income is coming from the Philippines Gross Domestic Product of the Philippines since his income is from the country  Gross Domestic Product of the Philippines and China since his income is coming from both countries      34  How ownership of stocks be determined  A  By owning a corporation  B  By calling you investor C  By buying and selling your shares D  By the number of shares a person owns relative to the number of outstanding shares      35 How various amounts per day can grow into million  A  Savings B  Time deposits C  Invest in Real Estate D  Invest in Stock market

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Multiple Choice : Write the letter of the best answer. _____1. What does too much money chasing too few goods mean? increased demands for goofs

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