Courses » SS2 » SS2 Economics » Economics Exam Topics » Determinants of Supply And Demand For Money - Questions and Answers

Determinants of Supply And Demand For Money - SS2 Economics Past Questions and Answers - page 1

1

What factors influence the demand for money?

A

Interest rates, level of income, and price level

B

Monetary policy, banking system, and government spending

 

C

Supply and demand, market equilibrium, and consumer preferences

D

None of the above

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2

What factors influence the supply of money?

A

Interest rates, level of income, and price level

B

Monetary policy, banking system, and government spending

C

Supply and demand, market equilibrium, and consumer preferences

D

None of the above

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3

How can central banks control the supply of money?

A

By adjusting interest rates

B

By printing more money

C

By creating loans and deposits

D

a and b

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4

How does an increase in the general price level affect the demand for money?

A

People tend to hold less money

B

People tend to hold more money

C

It has no effect on the demand for money

D

None of the above

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5

What is the difference between supply and demand for money?

 

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6

What is the role of the banking system in determining the supply of money?

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