In terms of the demand for money the interest rate represents ?

Related Mcqs:

Which one of the following is not true ?

A. The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed as an annualized percentage of the selling price and this is called the refinancing rate B. Commercial banks may borrow from and lend to each other … Which one of the following is not true ?Read More...

The interest rate ?

A. is determined in the goods market and influences the level of planned investment and thus the money market B. is determined in the money market and influences the level of planned investment and thus the goods market C. is determined in the goods market and has no influences on the money market D. is … The interest rate ?Read More...

Three variables affect the demand for money they are _______ and __________?

A. bank opening hours, the proportion of weekly paid employee’s interest rates B. the price level interest rates real income C. The time of year bank opening hours the price level D. The proportion of weekly paid employees the time of year real income...

Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?

A. Rs 4,000 B. Rs 5,000 C. Rs 1,000 D. Rs 0...

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

A. money supply curve B. LM curve C. money demand curve D. IS curve...