► Barter system involves commodities
► Barter system involves double coincidence of wants
► Barter system lacks a system for future payments
Question No: 3 ( Marks: 1 ) - Please choose one
The process of financial intermediation:
► Creates a net cost to an economy but is unavoidable
► Is used primarily in underdeveloped countries
► Is always used when a borrower needs to obtain funds
► Increases the economy's ability to produce
Stock market bubbles can lead to:
► An inefficient allocation of resources
► Stock market crashes
► Patterns of volatile returns from the stock market
► All of the given options
Question No: 30 ( Marks: 1 ) - Please choose one
The Fed was reluctant to make discount loans beacause of which one of the following reason?
► Beacause it was a destabilizing force for financial markets
► Beacause it resulted in banks in poor financial standing
► Beacause it pushed the discount rate above the target federal funds rate
► Beacause it proved to be a very stabilizing force for financial markets
Question No: 33 ( Marks: 1 ) - Please choose one
Complete crowding-out will occur if:
► The money supply rises when Government purchases increases
► An increase in Government purchases does not change Consumption
► Taxes rise when Government purchases increases
► An increase in Government purchases causes an equal fall in Consumption, Investment, and Net Exports
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