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.Management Sciences
Category: Money, Interest Rates And Output
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
The interest rate is determined in ?
A. the money and labor markets
B. the goods and labor markets
C. the goods market
D. the money markets
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 determined in the money market and has no influence on the goods market
The opportunity cost of holding money is determined by ?
A. the discount rates
B. the level of aggregate output
C. the interest rates
D. the inflation rates
If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
A. change in a certain direction
B. remain constant
C. fall
D. rise
M4 is a __________ measure of money and includes deposits at both __________ and _________?
A. narrow, banks, building societies
B. wide, banks insurance companies
C. Narrow, banks insurance companies
D. Wide, banks building societies
The money supply is ?
A. State Bank of Pakistan Issue Department
B. Money + bank cards + credit cards
C. Cheques + money + bank cards + credit cards
D. Currency in circulation plus bank deposits
The demand for money represents the idea that there is ?
A. a positive relationship between the interest rate and the quantity of money demanded
B. a negative relationship between the price level and the quantity of money demanded
C. a negative relationship between the level of aggregate output and the quantity of money demanded
D. a negative relationship between the interest rate and the quantity of money demanded
When interest rate rise, other things equal, we can expect the quantity of real money holding to ?
A. fall
B. increase
C. not change
D. None of these
When economies speak of the demand for money which of the following are they asking ?
A. How much cash do you wish you could have?
B. How much wealth would you like?
C. How much income would you like to earn?
D. What proportion of your financial assets do you want to hold in non-interest-bearing forms
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