Tag: liquidity preference and profit

Questions Related to liquidity preference and profit

The contingent function of money are

  1. Distribution of national income

  2. Distribution from of capital

  3. Basis of credit

  4. All of the above


Correct Option: D

It is uncommon for an item to be liquid if

  1. It is not acceptable in the market

  2. Can not be sold in the market

  3. Not accepted by creditors

  4. Both a & b


Correct Option: D

Money is a matter of functions of four, ___________.

  1. medium, income, standard and store

  2. medium, measure, standard and store

  3. medium, measure, profit and store

  4. medium, quantity, standard and store


Correct Option: B

Which of the following are the seven parts of the financial system?

  1. Financial instruments, credit cards, financial instruments, regulatory agencies, central banks, Federal reserve System, money

  2. Financial instruments, money, financial instruments, the Security and Exchange Commission, central banks, Federal Reserve System, credit cards

  3. Money, financial instruments, financial markets, financial institutions, regulatory agencies, central banks, Federal Reserve System

  4. Money, financial instruments, financial markets, banks, regulatory agencies, central banks, Federal Reserve System, credit cards


Correct Option: C

In present days, the use of credit money like ___________ is expanding widely.

  1. cheque

  2. draft

  3. bill of exchange

  4. all of the above


Correct Option: D

The relatively less important functions of money are called __________.

  1. secondary function

  2. derived functions

  3. both (A) and (B)

  4. derivative function


Correct Option: C

Which of the following are the Contingent functions of money?

  1. Basis of credit

  2. Distribution of national income

  3. General form of Capital

  4. All of above


Correct Option: D

________ has mentioned contingent functions of money.

  1. Prof. Keynes

  2. Prof. Kinley

  3. Prof. Marshall

  4. Prof. Frisch


Correct Option: B

The transaction approach to the Quantity Theory of Money is given by _________.

  1. Frisch

  2. Fisher

  3. Finlay

  4. Fredrick


Correct Option: B

As per Irving Fisher principle, if the quantity of money is reduced by one half  ________.

  1. the price level will also be reduced by one half

  2. value of money will be twice

  3. the price level will be double and the value of money will be one half

  4. the price level will also be reduced by one half and value of money will be double.


Correct Option: D