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Economics Past Questions and Answers

Economics Questions

Question 2706:
Money is demanded for which of the following reasons?
  • A To meet unforseen contigencies
  • B To solve the problem of inflation
  • C It is easily divisible
  • D It is portable
View Answer & Explanation
Question 2707:
The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
  • A A geometrical fall in prices
  • B A proportionate fall in prices
  • C A rise in prices
  • D An unequal fall in prices
View Answer & Explanation
Question 2708:
which of the following is the most liquid asset?
  • A Bank notes
  • B Silver
  • C Bank deposit
  • D Cheques
View Answer & Explanation
Question 2709:
The situation in which there is persistent fall in the general price level is referred to as
  • A Devaluation
  • B Depreciation
  • C Deflation
  • D Inflation
View Answer & Explanation
Question 2710:
commercial banks settle their daily interbank indebtedness through the
  • A Money market
  • B Finance House
  • C Acceptance house
  • D Clearing House
View Answer & Explanation