Question

Can you please help me with solving this papers regarding money theory (economic - FINANCE)  ? i don't want the steps just the correct answer

. Comists Stout Shows. mists Store Study the issue of money seriously because the evidence money supply ond price reuels move very closely together wry and interest rate movements are related to cach other The sunward trend in business economic Controle (economic Contraction is caused by the decline s in monetary prowth coused by All of the above 3 true. El only las and 16) are true. 2. Which of the following best describes indirect financing ? Al The company borrows / borrows from the bank. B) that people buy shares from maitual funds. The company purchases finorary bells from the Secondary market. @ All of the above E of the above only (a) and (6) are true, 3. Financial intermediaries AJ+ocis significant amount o f prodon and transoce costs in the economy B) It encourages a t of Small savers c) Participates in the indivCt financing process. all of the above are true. El Only (a) and (b) are true. 4. People keep cash in their hands even in on inflat/orory environment, even if alternative investment instruments for money have a better value retention function. This can be explained by the fact that money is - ( A extremely guid Borore commodny without Sushion c) one thing docopied in economic change D) all of the obore 5. The proptem of mutual coincidence of needs can be eliminated if - Al trode is organ fod in a common market money is used to facilitate the exchange c) exchange of goods with goods (exchangel is encouraged D above (0) and (b) if true. 6. The coupon bond with a $800 coupon payment and a $16.000 coupon bond will have an annual coupon (interest rate. Al 4 percent Bl 8 percent C) 10 percent 160.4+de - 800 el no percent 800/160 = 40+ de 905 ( none of the above - Hiis defined oa capital market Anancial instrument trot ne kes a fixed Coupon payment every year 10+ the due date and then pays us pomilo value A A Simple sepulloon Bl Fred payment debt / credit © Coupon payment bond Dy discounted berid 1600 = 800 2

Answer 1

ANSWER-1

Correct option - E) Only (a) and (b) are true.

From the IS-LM framework of macroeconomics, we know that the general price level, the interest rate and the quantity of money in an Economy are all interrelated. However, there is no evidence which shows that the reduction in the quantity of money in an economy leads to recession in the economy.

So the correct option is E.