Category: Money, Interest Rates And Output

A. decreases
B. remain the same, as long as banks hold no excess reserves
C. could either increase or decrease
D. increases

A. an asset
B. capital
C. net worth
D. a liability

A. higher interest rates
B. lower expected future profits
C. more expensive capital goods
D. All of the above

A. hedge against inflation
B. Medium of exchange
C. unit of account
D. Store of value

A. bills of exchanges
B. government bonds
C. Treasury bills
D. Capital bills

A. assets
B. deposits
C. loans
D. government bonds

A. fiscal drag
B. investment blight
C. crowding-out
D. the Thatcher effects

A. The interest rate at Which commercial banks lend to and borrow from each other
B. The interest rate the European Central Bank pays on reserves
C. The interest rates the public pays when borrowing from banks
D. The interest rates the European Central Bank charges on loans to banks
E. He interests rate banks pay on the public’s deposits

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

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