A. hedge against inflation
B. Medium of exchange
C. unit of account
D. Store of value
Related Mcqs:
- 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 - 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 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 - 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 - 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 - 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 - 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 - 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
