The situation in which there is persistent fall in the general price level is referred to as
Devaluation
Depreciation
Deflation
Inflation
Correct answer is C
No explanation has been provided for this answer.
Which of the following is the most liquid asset?
Bank notes
Silver
Bank deposit
Cheques
Correct answer is C
No explanation has been provided for this answer.
A geometrical fall in prices
A proportionate fall in prices
A rise in prices
An unequal fall in prices
Correct answer is B
No explanation has been provided for this answer.
Money is demanded for which of the following reasons?
To meet unforseen contigencies
To solve the problem of inflation
It is easily divisible
It is portable
Correct answer is A
Money held to cater for unforeseen circumstances is referred to as the precautionary demand for money. In this case, money is kept for use in a contingency. That is, people maintain sufficient cash balance to act as a cushion or buffer against unexpected events.
One of the function of money is
Double coincidence of wants
Unit of accounts
Indivisibility
Making payment through banks only
Correct answer is B
No explanation has been provided for this answer.