Money that a government has required has required to be accepted in settlement of debts is ?

Related Mcqs:

1. What is called bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts?

   A. Liquidator
   B. Solicitor
   C. Receiver
   D. Agent

2. A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

   A. reduce
   B. have no effect on
   C. increase
   D. double

3. 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

4. Which of the following is included in broad money, but not included in narrow money ?

   A. savings accounts
   B. Travelers checks
   C. Currency held outside banks
   D. Automatic-transfer savings accounts

5. As the required reserve ratio is decreased the money multiplier ?

   A. decreases
   B. remain the same, as long as banks hold no excess reserves
   C. could either increase or decrease
   D. increases

6. Which money is called ‘Earnest’ Money ?

   A. Advanced payment to bind a contract or bargain
   B. A token of something to come
   C. A promise or assurance
   D. All of these

7. The quantity theory of money implies that a given percentage change in the money supply will cause ?

   A. an equal percentage change in nominal DGP.
   B. an equal percentage change in real GDP
   C. a larger percentage change in nominal GDP
   D. a smaller percentage change in nominal

8. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

   A. The velocity of circulation decrease
   B. The number of transaction decrease
   C. There is deflation
   D. The velocity of circulation and the number of transactions is constant

9. When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

   A. None of these answers
   B. decrease the quantity demanded of money
   C. increase the quantity demanded of money
   D. decreases the demand for money
   E. increases the demand for money

10. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

    A. increase in the money demand
    B. decrease in the money demand
    C. increase in the money demand
    D. None of the above