A

Admin • 833K Points
Coach

Q. The situation ‘Liquidity trap’ refers to

  • (A) Because of price rate declination people wish to hold only cash
  • (B) People want to hold only cash because there is too much of liquidity in the economy
  • (C) The rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash
  • (D) There is an excess of foreign exchange reserves in the economy leading to excess of money supply
  • Correct Answer - Option(C)
  • Views: 16
  • Filed under category Economic
  • Hashtags:

No solution found for this question.
Add Solution and get +2 points.

You must be Logged in to update hint/solution

Discusssion

Login to discuss.

Be the first to start discuss.