Money And Banking

Question

Define liquidity trap.

Solution

It is a situation of very low rate of interest where people are ready to hold whatever stock of money is supplied expecting interest rate to rise in future and bond prices to fall.

Some More Questions From Money And Banking Chapter

What is a ‘legal tender’? What is ‘fiat money’?

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Money And Banking

Define liquidity trap.

Some More Questions From Money And Banking Chapter

What is a ‘legal tender’? What is ‘fiat money’?

Distinguish between limited legal tender and unlimited legal tender.

Give functional definition of money.

Give narrow definition and broad definition of money.

Write short notes on the following:
Standard and Token coins.

Write short notes on the following:
Credit money

What is High Powered Money?
or
Write short notes on the following:
High powered money.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Phone Number

Email Address

Location

For Daily Free Study Material Join wiredfaculty

Money And Banking

Define liquidity trap.

Some More Questions From Money And Banking Chapter

What is a ‘legal tender’? What is ‘fiat money’?

Distinguish between limited legal tender and unlimited legal tender.

Give functional definition of money.

Give narrow definition and broad definition of money.

Write short notes on the following:Standard and Token coins.

Write short notes on the following:Credit money

What is High Powered Money?orWrite short notes on the following:High powered money.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Write short notes on the following:
Standard and Token coins.

Write short notes on the following:
Credit money

What is High Powered Money?
or
Write short notes on the following:
High powered money.