Subject - Economics:

Macroeconomics

MCQ - 187-4197

Question:

Which of the following is true of money and financial markets?

As the demand for bonds increases, the interest rate increases.
For a given money supply, if nominal GDP increases, the velocity of money decreases.
When demand for stocks and bonds increases, the asset demand for money falls.
For a given money supply, if nominal GDP increases, the velocity of money decreases.
Equilibrium in the money market occurs where the transaction demand for money equals the supply of money.

Correct Answer: C

Explanation:

Stocks, bonds, and money are all financial assets. All else equal, rising demand for stocks and bonds lowers the asset demand for money.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following is true of money and financial markets? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 187-4197.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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