Economics Money Banking and International Trade Test 3 Mcqs Preparation Online Money Banking and International Trade Test 3 Mcqs Preparation Online 1. A retail price index is a good measure of changes in?A. Consumers' cost of living B. General purchasing power of money C. Patterns of consumer expenditureD. Average standard of living Loading... 2. According to the classical approach, the demand for money primarily depends upon?A. Economic transactions B. Precautionary motiveC. Rate of interest D. Speculative activity Loading... 3. The degree of elasticity in respect of speculative demand for money, under the liquidity trap conditions, is?A. One B. Zero C. InfiniteD. Greater than one Loading... 4. The relationship between the market rate of interest and the market price of a bond is?A. Direct B. Positive and proportionate C. UncertainD. Inverse Loading... 5. At a very low rate of interest, the interest-elasticity of the speculative demand for money becomes?A. Very high B. InfiniteC. Low D. High Loading... 6. In which capacity does a person stand to gain from deflation?A. As a pensioner B. As an entrepreneur C. As an equity-holderD. As a debtor Loading... 7. Which of the following is not an instrument of monetary policy?A. Credit rationingB. Bank rate C. Taxation D. Open-market operations Loading... 8. Which of the following measures is helpful in controlling inflation?A. Price control and rationing of essential goods B. Reduction of government expenditure C. All of the aboveD. Raising the bank rate Loading... 9. The liquidity trap condition occurs at a?A. Very high rate of interestB. High rate of interest C. Low rate of interest D. Very low rate of interest Loading... 10. The cash transactions approach to the quantity theory of money is usually associated with the name of?A. D.H.RobertsonB. Alfred Marshall C. Irving Fisher D. J.M.Keynes Loading... Loading... Related PostsMoney Banking and International Trade Test 1 Mcqs…Money Banking and International Trade Test 2 Mcqs…Money Banking and International Trade Test 4 Mcqs…Money Banking and International Trade Test 5 Mcqs…Money Banking and International Trade Test 7 Mcqs…Money Banking and International Trade Test 6 Mcqs… Continue Reading Previous Money Banking and International Trade Test 2 Mcqs Preparation OnlineNext Money Banking and International Trade Test 4 Mcqs Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ