-In the Above Figure, If the Interest Rate Is 2

question 37

Multiple Choice

-In the above figure, if the interest rate is 2 per cent per year, the quantity of money demanded is

• A) less than the quantity of money supplied, and the demand for money curve will shift.
• B) greater than the quantity of money supplied, and the interest rate will change.
• C) less than the quantity of money supplied, and the interest rate will change.
• D) greater than the quantity of money supplied, and the demand for money curve will shift.
• E) greater than the quantity of money supplied, and the supply of money curve will shift.

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Definitions:

Current Ratio

A financial ratio that expresses the relationship between current assets and current liabilities, computed by dividing current assets by current liabilities.

Marketable Securities

Financial instruments that can be easily converted into cash, often used for short-term investments by companies.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within a year or within the operating cycle of a business, such as cash, marketable securities, inventory, and accounts receivable.