CSS :: Money Banking and International Trade
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21. |
The cash transactions approach to the quantity theory of money is usually associated with the name of: |
A. |
Alfred Marshall |
B. |
Irving Fisher |
C. |
J.M.Keynes |
D. |
D.H.Robertson |
Answer: Option B
Explanation:
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22. |
The relationship between the market rate of interest and the market price of a bond is: |
A. |
Inverse |
B. |
Direct |
C. |
Positive and proportionate |
D. |
Uncertain |
Answer: Option A
Explanation:
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23. |
The degree of elasticity in respect of speculative demand for money, under the liquidity trap conditions, is: |
A. |
Zero |
B. |
One |
C. |
Greater than one |
D. |
Infinite |
Answer: Option D
Explanation:
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24. |
A retail price index is a good measure of changes in: |
A. |
Consumers' cost of living |
B. |
General purchasing power of money |
C. |
Average standard of living |
D. |
Patterns of consumer expenditure |
Answer: Option A
Explanation:
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25. |
Which of the following is not an instrument of monetary policy? |
A. |
Taxation |
B. |
Bank rate |
C. |
Open-market operations |
D. |
Credit rationing |
Answer: Option A
Explanation:
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26. |
At a very low rate of interest, the interest-elasticity of the speculative demand for money becomes: |
Answer: Option D
Explanation:
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27. |
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 |
Answer: Option B
Explanation:
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28. |
In which capacity does a person stand to gain from deflation? |
A. |
As a pensioner |
B. |
As a debtor |
C. |
As an entrepreneur |
D. |
As an equity-holder |
Answer: Option A
Explanation:
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29. |
According to the classical approach, the demand for money primarily depends upon: |
A. |
Rate of interest |
B. |
Economic transactions |
C. |
Speculative activity |
D. |
Precautionary motive |
Answer: Option B
Explanation:
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30. |
Which of the following measures is helpful in controlling inflation? |
A. |
Raising the bank rate |
B. |
Price control and rationing of essential goods |
C. |
Reduction of government expenditure |
D. |
All of the above |
Answer: Option D
Explanation:
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