Problem Set5
Question1:
Allocate the best possible word and derive an appropriate situation further from the
chapter
Money
a). A farmer directly exchange vegetables with cloth.
for the statements given below:
b). The problem for farmer is how much wheat should be exchanged for how much
cloth.
c). The main problem for farmer is he has a small place to live in where he cannot put
his ready to be used wheat.
d).The farmer does not have enough wheat.So he decided to borrow cloth from the
farmer but after a year he is facing the same issue of not having enough wheat to pay
back.
e). He cannot carry his wheat to every place he goes, so he is facing a problem.
f). He wants to transfer his wheat from Gujranwala but he cannot possibly transfer.
Give an example each for the following:
Question 2:
a). Standard Metallic Money
b). Token metallic money.
c). Convertible Paper money.
d). Inconvertible Paper money.
e). Credit Money.
Question3:
Describe Quantity theory of Money with the help of an example.
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