A. The number of times a unit of money changes hands daily
B. The number of times as unit of money changes hands monthly
C. The number of times a unit of money changes hands annually
D. The number of times a unit of money changes value
Related Mcqs:
- If the demand for money depends on the interest rate the velocity of circulation is ?
A. not constant and the quantity theory of money does hold.
B. constant and the quantity theory of money does hold.
C. not constant and the quantity theory of money does not hold.
D. constant and the quantity theory of money does not hold. - Reduction in the circulation of money resulting from fall of prices is known as ?
A. deflation
B. inflation
C. cost effective
D. cost - 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 - Which money is called Hot money ?
A. That moves across country borders in response to interest rate differences
B. That moves away when the interest rate differential
C. Both of them
D. None of them - It is difficult to determine if the velocity of money is constant over time because ?
A. it is difficult to measure the value of nominal GDP over time
B. there has been very little fluctuation in the money supply over time.
C. it is difficult to measure the demand for money over time
D. whether velocity is constant or not may depend on how the money supply is measure. - 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 - 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 - When supply and demand for money are 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 price level ?
A. shifts money demand to the right and increases the interest rate
B. None of these answers
C. shifts money demand to the right and decreases the interest rate
D. shifts money demand to the left and increases the interest rate
E. shifts money demand to the left and decrease the interest rate - 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 - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. decrease in the money supply
B. increase in the money supply
C. decrease in the money demand
D. None of the above
