Tag: liquidity preference and profit

Questions Related to liquidity preference and profit

What is the value of money multiplier when initial deposits are $Rs. 500$ crores and LRR is $10%$?

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. $0.1$

  2. $0.2$

  3. $10$

  4. $20$

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Correct Option: A
Explanation:

$MONEY\space MULTIPLIER = \dfrac{1}{LRR}$

$MONEY\space MULTIPLIER = \dfrac{1}{10} = 0.1$
                                                     

All of the following is function of money except __________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. to provide durability

  2. to be portable

  3. to be divisible

  4. None of the above

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Correct Option: A

Liquidity of asset is dependent on __________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. the term of amatively of the asset

  2. existence of organized secondary Markets

  3. both a & b

  4. none of the above

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Correct Option: C

Four Functions money as per functional approach are

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. Medince

  2. Measure

  3. Saving

  4. Both a & b

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Correct Option: D

Value of money is dependent on holding power of money .It is

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. Transaction approach

  2. Cash balance approach

  3. Debit balance approach

  4. Asset approach

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Correct Option: B

The main functions performed by money are called ___________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. contingent functions

  2. secondary functions

  3. primary or original function

  4. important functions

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Correct Option: C

Primary functions of money ________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. medium of exchange

  2. measure of value

  3. standard of deferred payment

  4. both (A) and (B)

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Correct Option: D

Prof. Kinley has mentioned _____ contingent functions of money.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. two

  2. three

  3. four

  4. five

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Correct Option: C

The liquidity approach emphasizes the function of money as a ________.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. standard of deferred payment of money

  2. store of money

  3. income from money

  4. (A) and (C)

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Correct Option: B

Measure of value of all goods and services refers __________ from following function of money.

economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

  1. medium of exchange

  2. unit of account

  3. standard of deferred payments

  4. store of value

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Correct Option: B