Question : When the rate of interest is at its maximum, which of the following will follow?
Option 1: The demand for bonds will be at its minimum.
Option 2: The speculative demand for money will be zero.
Option 3: The speculative demand for money will be at its maximum.
Option 4: The speculative demand for money will be equal to the supply of money.
New: SSC CHSL tier 1 answer key 2024 out | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: The speculative demand for money will be zero.
Solution : The correct answer is The speculative demand for money will be zero.
The amount that a lender charges a borrower for any debt is known as an interest rate, and it is typically stated as a percentage of the principal. The market value of bonds decreases when interest rates rise; hence, there is an inverse relationship between the two variables. As a result, at high interest rates, the demand for money for speculative purposes decreases, and at low-interest rates, it increases.
Candidates can download this e-book to give a boost to thier preparation.
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Question : Which of these statements is true?
Question : When the general interest rate reaches a low level, which of the following statements will be correct?
Question : Which of the following statements is/are correct concerning the demand for money? i. When the interest rate is high, the demand for money is low. ii. When the interest rate is low, demand for money is also low. iii. When the interest rate is high, demand for
Question : Equilibrium price is the price when :
Question : At a certain sum of money with the interest rate of 6% per annum for 4 years, the simple interest is Rs. 4500. Find the compound interest (compounding annually) of 2 years at the same sum when the rate of interest is 4% per annum.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile