SECOND QUIZ FOR ECONS 204: MACRO ECONOMICS II Days Hours Minutes Seconds Leave this field blank Your Name: Reg. Number Your Department: Course of Study: 1. What is the primary factor that determines the speculative demand for money? Pick the correct answers from the options provided. (A) Real Income ( B) Interest Rates (C) Inflation Rate (D) Technology Advancements 2. How does an increase in interest rates affect the demand for money? Pick the correct answers from the options provided. (C) It decreases the demand for money (D) It depends on income levels (B) It has no effect on the demand for money (A) It increases the demand for money 3. What does the supply curve of money indicate? Pick the correct answers from the options provided. (A) It shows a direct relationship between money supply and interest rates (B) It shows a vertical line, indicating money supply is independent of interest rates (C) It shows an inverse relationship between money supply and interest rates (D) It shows a horizontal line, indicating infinite money supply. 4. When is the money market in equilibrium? Pick the correct answers from the options provided. (A) When the demand for money is greater than the supply (B) When the supply of money is greater than the demand (C) When the quantity of money demanded equals the quantity of money supplied (D) when interest rates are extremely high 5. Which of the following factor can lead to a decrease in the equilibrium interest rate in the money market? Pick the correct answers from the options provided. (A) An increase in the demand for money (B) A decrease in the money supply (C) A decrease in income levels (D) A decrease in transfer costs Submit
