The liquidity trap condition occurs at a:

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Question:
The liquidity trap condition occurs at a:

1.Low rate of interest

2.Very low rate of interest

3.High rate of interest

4.Very high rate of interest

Posted Date:-2021-08-16 08:13:53

More MCQS Questions and answers

  1. A deficit disequilibrium in the balance of payments can be corrected through:
  2. At a very low rate of interest the interest-elasticity of the speculative demand for money becomes:
  3. Dynamic factors in the realm of international trade theory relate to changes in:
  4. Identify Pigou s cash balances equation:
  5. If the elasticity of foreign demand for the country s exports is unity the supply curve of foreign exchange will be:
  6. If the increase in exports exceeds the increase in imports and other things remain the same then the level of income will:
  7. In a bimetallic standard:
  8. Of the following concepts of term of trade which one was introduced by F.W. Taussig?
  9. On which of the following is the law of comparative costs based?
  10. One of the following is an instrument of qualitative credit control. Identify it:
  11. Stagflation refers to a situation which is characterised by:
  12. The degree of elasticity in respect of speculative demand for money under the liquidity trap conditions is:
  13. The devaluation of currency by a country is designed to lead to:
  14. The multiple exchange rates were first employed by:
  15. Under the flexible exchange rate system the exchange rate is determined by:
  16. Which of the following according to Milton Friedman is not a key determinant of the demand for money?
  17. Which of the following is not a liability of commercial banks?
  18. Which of the following is not an instrument of monetary policy?
  19. Which of the following statements is not correct?
  20. Who is generally regarded as the founder of the Modern Quantity Theory of Money?
  21. A retail price index is a good measure of changes in:
  22. According to the classical approach the demand for money primarily depends upon:
  23. Arrange the following assets of a bank in the ascending order of income (i.e. in the descending order of liquidity): I-Bills II-Loans III-In-vestments in Government and other approved securities
  24. As compared to the classical theory which function of money was stressed more in the Keynesian theory?
  25. Bad money drives good money out of circulation. With whole name is this law associated?
  26. Commercial banks have always to face a conflict between:
  27. During the period of hyper-inflation there takes place astronomical rise in prices and as a result money becomes almost worthless. Such a situation was witnessed in Germany in 1923 and in China in:
  28. Identify the country which first employed credit rationing as an instrument of credit control:
  29. In which capacity does a person stand to gain from deflation?
  30. In which country was the instrument of minimum legal cash reserves ratio for banks first introduced?
  31. Open market operations refer to the buying and selling of:
  32. The branch banking system is currently in vogue in most countries of the world. Identify the country where it first developed:
  33. The first explanation of stagflation was offered originally in 1931 by:
  34. The market for very short term loans is known as:
  35. The spot and forward markets in foreign exchange are linked to each other through:
  36. Which among the following is not an assumption of the classical - territory of comparative cost advantage?
  37. Which one of the following approaches to the definition of money gives the widest possible view of money?
  38. Which one of the following will reduce the capacity of commercial banks to lend?
  39. According to the Heckscher-Ohlin theory of international trade the most important cause of differences in relative commodity pries and trade between nations is the differences in:
  40. Adam Smith s views on world trade can be best understood if one considers them as a reaction to:
  41. Bank rate refer to the interest rate at which:
  42. By which year had the gold standard virtually disappeared from the world as an international monetary system?
  43. Cost-push inflation is caused by:
  44. Developing countries usually complain of:
  45. During which decade of the nineteenth century did most European countries adopt the gold standard?
  46. Fiat money refers to:
  47. Identify the country which was the first to adopt the gold standard:
  48. If there is a significant decrease in the demand for loans banks will be forced to:
  49. In the Fisher s equation of exchange MV = PT what does T denote?
  50. In which capacity does a person stand to gain from deflation?
  51. Money has been defined as that by delivery of which debt contracts and price contracts are discharged and in the the shape of which general purchasing power is held . Whole definition is this?
  52. Selective credit control devices are used by the central bank of a country to:
  53. Since when has the Reserve Bank of India been successfully operating the instrument of selective credit control in this country?
  54. The terms of trade refer to:
  55. The best example of representative full-bodied money is found in the gold certificates which circulated in the U.S.A. before being withdrawn from circulation in:
  56. The cash transactions approach to the quantity theory of money is usually associated with the name of:
  57. The china banking system a variant of the group banking system developed around the mid-nineteenth century and reaching the apex of popularity in the present century. In which country did it develop?
  58. The elasticity of demand for foreign exchange for financing capital outflow is:
  59. The foreign exchange market performs the function of:
  60. The immediate effect of credit-creation by banks is:
  61. The limited legal-tender money stands for the component of money which:
  62. The liquidity trap condition occurs at a:
  63. The main function of legal cash reserve requirements is to:
  64. The Quantity Theory of Money establishes the relationship between quantity of money in an economy and the level of:
  65. The reduction or elimination of inflation is known as:
  66. The relationship between the market rate of interest and the market price of a bond is:
  67. Under the unit banking system each individual bank is a separate entity having its own independent management and board of directors. Which country is generally regarded as the home of the unit banking system?
  68. What does the modern theory of international trade predict regarding difference in factor prices between nations on account of trade? The difference:
  69. What proportion of international trade is based on absolute differences in costs of production? .
  70. What would be the impact on the country s balance of payments position when in the context of inflationary pressures recourse is taken to expenditure reducing policies?
  71. When did the UK finally abandon the gold standard?
  72. When the commodity value of money and its value as money are equal it is called:
  73. Which is not a function of the central bank of a country?
  74. Which of the following is an instrument of quantitative credit control?
  75. Which of the following is not a function of a commercial bank?
  76. Which of the following is not a part of the un-organised Indian money market?
  77. Which of the following is not an item on the assets side of the balance sheet of a commercial bank?
  78. Which of the following items in the balance of payments is invisible?
  79. Which of the following measures is helpful in controlling inflation?
  80. Which of the following was not favoured by the mercantilists?
  81. Which one of the following is an example of quasi-money or near-money?
  82. Who introduced the concept of the real balance effect?
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