ECO343


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The Cambridge demand equation is given as
Answer: md = kpy

The entire stock of currency and other liquid instruments in a country at a particular time is referred to as
Answer: money supply

Another name for currency money is
Answer: fiat money

Cash that can be withdrawn by drawing cheques on them is referred to as	
Answer: demand deposit

A rise in prices is gradual and there is no danger of inflation as long as there is	
Answer: investment

M1 + Savings deposits is known as
Answer: m2

Inflationary situations in an economy is controlled using	
Answer: restrictive monetary policy

The total amount of monetary assets available in an economy at a specific time referred to as
Answer: money stock

Friedman posited that the quantity theory is a theory of the	
Answer: demand for money

According to Keynes, increase in the quantity of money will lead to increases aggregate money demand on investment aS long as	falls
Answer: interest rate

	is regarded as the founder of the
Chicago school of economics
Answer: milton friedman

Mathematically, the speculative demand for money is given as	
Answer: Is = f(r)


Which of these is not a type of exchange rate?
Answer: dirty

Fixed deposits of customers in a commercial bank is referred to as
Answer: time deposit

The quantity theory of money posits that
money supply has a	relationship with
the price level
Answer: direct

	measures how much increase in
money supply occurs due to increase in cash or currency
Answer: deposit multiplier

Holding money for unforeseen opportunities is known as motive
Answer: precautionary

Open market operation was introduced in Nigeria in the year	
Answer: 1993

Which of these is not an instrument of monetary policy
Answer: selective credit controls

Factors influencing the money supply include all except	
Answer: investment


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Whatsapp: 08131667008