Money Banking and International Trade Test 3 Mcqs Preparation Online Malik Asghar — April 23, 2018 in Economics • add comment Money Banking and International Trade Test 3 Mcqs Preparation Online 1. The cash transactions approach to the quantity theory of money is usually associated with the name of?A. Irving Fisher B. Alfred Marshall C. D.H.RobertsonD. J.M.Keynes Loading... 2. According to the classical approach, the demand for money primarily depends upon?A. Economic transactions B. Rate of interest C. Speculative activity D. Precautionary motive Loading... 3. The relationship between the market rate of interest and the market price of a bond is?A. Inverse B. Positive and proportionate C. Direct D. Uncertain Loading... 4. The liquidity trap condition occurs at a?A. Low rate of interest B. Very low rate of interest C. High rate of interest D. Very high rate of interest Loading... 5. Which of the following is not an instrument of monetary policy?A. Credit rationingB. Taxation C. Bank rate D. Open-market operations Loading... 6. The degree of elasticity in respect of speculative demand for money, under the liquidity trap conditions, is?A. Greater than one B. Zero C. InfiniteD. One Loading... 7. A retail price index is a good measure of changes in?A. General purchasing power of money B. Consumers' cost of living C. Average standard of living D. Patterns of consumer expenditure Loading... 8. Which of the following measures is helpful in controlling inflation?A. All of the aboveB. Reduction of government expenditure C. Raising the bank rate D. Price control and rationing of essential goods Loading... 9. In which capacity does a person stand to gain from deflation?A. As an entrepreneur B. As a pensioner C. As a debtor D. As an equity-holder Loading... 10. At a very low rate of interest, the interest-elasticity of the speculative demand for money becomes?A. InfiniteB. Very high C. Low D. High Loading... Loading...
