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 money is also high. iv. When the interest rate is low, demand for money is high.
Option 1: Only ii and iv
Option 2: Only i and iv
Option 3: Only ii and iii
Option 4: Only i and ii
New: SSC CHSL Tier 2 answer key released | 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: Only i and iv
Solution : The correct answer is Only i and iv .
When the interest rate is high, the demand for money is low because people are more inclined to save in interest-bearing accounts rather than hold cash, which doesn't yield any interest. When the interest rate is low, demand for money is high as the opportunity cost of holding cash is lower, and people may prefer to keep more cash on hand for transactions. As interest rates rise, the demand for money decreases because the opportunity cost of holding cash 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 the following statements is/are correct about speculative demand for money?
i. It is a Perfectly interesting elastic. ii. It is Relatively interest-elastic. iii. It is Perfectly interest inelastic. iv. It is Relatively interest inelastic.
Question : Which of the following statements is/are correct regarding the liquidity trap?
i. It is where speculative demand for money is infinitely inelastic and the liquidity preference curve becomes perfectly elastic. ii. It is where speculative demand for money is
Question : Which of the following statements is/are correct concerning income or output? i. Income or output are flows. ii. Income or output are stocks. iii. Income or output can be defined over a period.
Question : Directions: Arrange the given words in the sequence in which they occur in the dictionary. i. Treasure ii. Treadmill iii. Training iv. Translate
Question : Directions: Arrange the given words in the sequence in which they occur in the dictionary: i. Examination ii. Explicit iii. Expenditure iv. Experience
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile