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CSS :: Money Banking and International Trade


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

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

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

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

25.  Which of the following is not an instrument of monetary policy?
A. Taxation B. Bank rate
C. Open-market operations D. Credit rationing

26.  At a very low rate of interest, the interest-elasticity of the speculative demand for money becomes:
A. Low B. High
C. Very high D. Infinite

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

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

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

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




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