A. Profit motive
B. Precautionary motive
C. Transactions motive
D. speculation motive
Related Mcqs:
- The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?
A. Transactions motive
B. precautionary motive
C. profit motive
D. speculation motive - If banks and the private sector decide to hold less cash the money multiplier will be ?
A. Unchanged
B. Larger
C. Smaller
D. Unstable - In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
A. Orderly marketing
B. trigger pricing
C. domestic content pricing
D. dumping - An increase in the money supply aimed at increasing aggregate output is referred to as ?
A. contractionary fiscal policy
B. expansionary monetary policy
C. contractionary monetary policy
D. expansionary fiscal policy - 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 - 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 - 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 - During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports - The main reason why land reform increase agricultural output is that is ?
A. encourages mechanization
B. allows the farmers to set the prices for their agricultural products
C. enables farmers to escape the problem of diminishing return
D. makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers - 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
