When it takes a large amount of currency to purchase goods and services, what is the price level? Options: A . &nbspLow B . &nbspHigh C . &nbspKeeps changing D . &nbspCannot be determined

When it takes a large amount of currency to purchase goods and services, what is

Question

When it takes a large amount of currency to purchase goods and services, what is the price level?

Options:

A . Low

B . High

C . Keeps changing

D . Cannot be determined

Answer: Option B
:
B
When it takes a large amount of currency to purchase goods and services, the purchasing power is low, which means the price levels are high.

Was this answer helpful ?

Next Question

Submit Solution

More Questions on This Topic :

Question 1. How does inflation affect money stored under a mattress?....

Question 2. When RBI wants to reduce liquidity in the banking system,....

Question 3. ___ is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to a....goods thus leading to an abnormal rise in price levels.

Question 4. Acting as a ___ house, the central bank ensures that accounts are settled and reduces the amount of labour and time invo....settled and reduces the amount of labour and time involved.

Question 5. The reserves held by commercial banks with the RBI , over and above the statutory minimum, are called....

Question 6. If CRR is increased by RBI, what will be the effect on the market?....

Question 7. The total amount of money stock in the economy is much greater than the volume of high powered money. State true or fals....the volume of high powered money. State true or false.

Question 8. Which of the following is a measure taken by RBI to control inflation in our country?....

Question 9. Which of the following does not come under quantitative methods of monetary policy?....

Question 10. A borrower comes into the bank and pays off 10,000 Rupees of his loan. This was a cash payment by the borrower to the ba....What was the immediate effect on the nation’s money supply?

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0

Submit Solution

More Questions on This Topic :

Latest Videos

Latest Test Papers