Tag: liquidity preference and profit

Questions Related to liquidity preference and profit

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

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

  1. Frisch

  2. Fisher

  3. Finlay

  4. Fredrick

Show answer
Correct Option: B

Functions of money doesn't include:

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

  1. Medium of exchange

  2. Store of value

  3. Measure of value

  4. Employment generation

Show answer
Correct Option: D

Which of the following statements about Money is incorrect?

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

  1. There are many assets which carry the attribute of money.

  2. Money is what money does.

  3. Value of money remains constant at all periods of time

  4. None of the above

Show answer
Correct Option: C

Money serves as:

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

  1. Medium of Exchange

  2. Common Measure of Value

  3. Standard of Deferred Payments

  4. All of the above

Show answer
Correct Option: D

Money represents _______________.

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

  1. Dollar

  2. Pounds Sterling

  3. Indian Rupee

  4. All of the above merely represent different units of money.

Show answer
Correct Option: D

In dynamic sense, money serves the following purposes:

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

  1. Gives direction to economic trends.

  2. Encourages specialisation and division of labour.

  3. Ensures transformation of savings into investments.

  4. All of the above

Show answer
Correct Option: D

When we say that Money serves as a common measure of value, we are considering the _________ aspect of Money.

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

  1. Static

  2. Dynamic

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: A

When we say that Money serves as a standard for deferred payments, we are considering the _________ aspect of Money.

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

  1. static

  2. dynamic

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: A

Money is a standard of deferred payments. This means that:

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

  1. Future transactions can be settled In terms of money

  2. Loans given and repayments thereof can be established in terms of money

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C

In 1979, As per RBI's New classification, M3 is known as ____________.

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

  1. Narrow Money

  2. Broad Money

  3. Near Money

  4. Pure Money

Show answer
Correct Option: B