Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig

Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig
by

1 Answer

Answer :

(1) Low rates of interest Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money is good for borrowers, but had for investors, who will see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.
by
selected

Related questions

Cheap Money means - (1) Low Rate of Interest (2) Low level of Savings (3) Low level Income (4) Excess of Black Money

Description : Cheap Money means - (1) Low Rate of Interest (2) Low level of Savings (3) Low level Income (4) Excess of Black Money

Last Answer : (1) Low Rate of Interest Explanation: Cheap Money' is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money ... see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds.

According to the classical system, saving is a function of - (1) Income (2) The interest rate (3) The real wage (4) The Price level

Description : According to the classical system, saving is a function of - (1) Income (2) The interest rate (3) The real wage (4) The Price level

Last Answer : (1) Income Explanation: Saving function is a mathematical relation between saving and income by the household sector. This function captures the saving-income relation, the flip side of the consumption-income relation that forms one of the key building blocks for Keynesian economics.

According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.

Description : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.

Last Answer : (b) level of income.

According to the classical system, saving is a function of (1) Income (2) The interest rate (3) The real wage (4) The Price level

Description : According to the classical system, saving is a function of (1) Income (2) The interest rate (3) The real wage (4) The Price level

Last Answer : Income

Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Last Answer : (d) Increase borrowing and spending.

A low interest policy is also known as – (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy

Description : A low interest policy is also known as – (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy

Last Answer : (1) cheap money policy Explanation: Cheap money policy involves loan or credit with a low interest rate, or the setting of low interest rates by the central bank of the country. Cheap money is ... , but bad for investors. Cheap money policy was one of the primary catalysts of the 2008 recession.

A low interest policy is also known as : (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy

Description : A low interest policy is also known as : (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy 

Last Answer : cheap money policy

An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Last Answer : (a) Lower interest rates

“Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

10. “Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

"Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation

Description : "Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation

Last Answer : (2) high rate of interest Explanation: Dear Money, also known as tight money, is money which has to be borrowed at a high interest rate, and so restricts expenditure by companies. This situation ... supply and demand. Businesses may have a tough time raising capital during a period of dear money.

Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Description : Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Last Answer : (3) Hot Money Explanation: Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a ... hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Last Answer : b. fall

Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Description : Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Last Answer : Hot Money

Saving is that portion of money income that is - (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables

Description : Saving is that portion of money income that is - (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables

Last Answer : (2) not spent on consumption Explanation: Saving is income not spent, or deferred consumption. In economics, it refers to any income not used for immediate consumption- consuming less out of a ... is the decision to defer consumption and to store this deferred consumption in some form of asset.

Saving is that portion of money income that is (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables

Description : Saving is that portion of money income that is (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables

Last Answer :  not spent on consumption

Which among the following statements is not true when there is an increase in interest rate in an economy? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Description : Which among the following statements is not true when there is an increase in interest rate in an economy? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Last Answer : (4) increase in capital return Explanation: Interest rate increase the cost of borrowing, which results in lesser investment activity and the purchase of consumer durables. In a low interest-rate ... . All of these factors raise output and employment as well as investment and consumer spending.

Which from the following is not true when the interest rate in the economy goes up? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Description : Which from the following is not true when the interest rate in the economy goes up? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Last Answer : (4) Return on capital increases Explanation: The interest rate is the cost of demanding or borrowing loanable funds. Alternatively, the interest rate is the rate of return from supplying or lending loanable funds. ... rate per unit of time, which is why it is called the rate of return on capital.

Which among the following statements is not true when there is an increase in interest rate in an economy ? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Description : Which among the following statements is not true when there is an increase in interest rate in an economy ? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Last Answer : increase in capital return

Which from the following is not true when the interest rate in the economy goes up ? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Description : Which from the following is not true when the interest rate in the economy goes up ? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Last Answer : Return on capital increases

The Keynesian consumption function shows a relation between - (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate

Description : The Keynesian consumption function shows a relation between - (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate

Last Answer : (3) aggregate consumption and aggregate income Explanation: According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.

Speculative demand for cash is determined by - (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions

Description : Speculative demand for cash is determined by - (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions

Last Answer : (1) The rate of interest Explanation: Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. ... rate, more people will expect a rise in interest rate (or a fall in bond prices).

.Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.

Description : .Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.

Last Answer : (b) Level of income and rate of interest

n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.

Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.

Last Answer : (b) Level of income.

The Keynesian consumption function shows a relation between (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate

Description : The Keynesian consumption function shows a relation between (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate 

Last Answer : aggregate consumption and aggregate income

Speculative demand for cash is determined by (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions

Description : Speculative demand for cash is determined by (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions

Last Answer : The rate of interest

Savings rate is relatively low in developed economies because of - (1) Low per capita income (2) Welfare programmes (3) Liquidity/ Borrowing constraint (4) High interest rate

Description : Savings rate is relatively low in developed economies because of - (1) Low per capita income (2) Welfare programmes (3) Liquidity/ Borrowing constraint (4) High interest rate

Last Answer : (2) Welfare programmes Explanation: As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because ... generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).

Savings rate is relatively low in developed economies because of (1) Low per capita income (2) Welfare programmes (3) Liquidity/Borrowing constraint (4) High interest rate

Description : Savings rate is relatively low in developed economies because of (1) Low per capita income (2) Welfare programmes (3) Liquidity/Borrowing constraint (4) High interest rate

Last Answer : Welfare programmes

What happens when the Fed cuts interest rates?

Description : What happens when the Fed cuts interest rates?

Last Answer : answer:Lower federal interest rates make it easier-that is, less risky and burdensome-for large businesses, especially private banks, to borrow money from the federal government. This in turn ... of cheap consumables. For more information, try: http://en.wikipedia.org/wiki/Federal_Reserve_System

Do you think the Fed did the right thing by lowering interest rates ?

Description : Do you think the Fed did the right thing by lowering interest rates ?

Last Answer : answer:http://www.lewrockwell.com/paul/paul166.html The Folly of Fed Interest Rates by Rep. Ron Paul, MD March 18, 2004 The Federal Reserve, acting through its rate-setting Federal Open Market ... private banking, where interest rates are set by the free market and dollars are backed by gold.

Based on current data, would you lower the interest rates?

Description : Based on current data, would you lower the interest rates?

Last Answer : The interest rate is set by the Federal Reserve Members and is based on the supply and demand of Federal Reserve Notes on hand, in this cases the differance between the DEBT and CREDIT in Their ... the Big money boys and the Politicians)! Read the archives in www.worldreports.org. Hope this helps

.An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Description : .An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Last Answer : (a) Lower interest rates

An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.

Description : An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.

Last Answer : (d) Leads to a movement along MEC schedule

Which of the following relations always holds true? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Description : Which of the following relations always holds true? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Last Answer : (2) Income = Consumption + Saving Explanation: Consumers do one of two things with their disposable income: They save it or they spend it. So Income = Consumption + Saving.

Which of the following relations always holds true ? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Description : Which of the following relations always holds true ? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Last Answer : Income = Consumption + Saving

According to monetary approach of Balance of Payments, the demand for money is a stable function of (a) income, prices and rate of interest (b) income and prices (c) prices and rate of interest (d) income, prices and foreign exchange reserves

Description : According to monetary approach of Balance of Payments, the demand for money is a stable function of (a) income, prices and rate of interest (b) income and prices (c) prices and rate of interest (d) income, prices and foreign exchange reserves

Last Answer : income, prices and rate of interest

Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Description : Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : (4) Total receipts over total expenditure Explanation: In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting ... . Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure).

Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Description : Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : Total receipts over total expenditure

Liberalization means A. Reducing number of reserved industries from 17 to 8 B. Liberating the industry, trade and economy from unwanted restrictions C. Opening up of economy to the world by attaining international competitiveness D. Free determination of interest rates

Description : Liberalization means A. Reducing number of reserved industries from 17 to 8 B. Liberating the industry, trade and economy from unwanted restrictions C. Opening up of economy to the world by attaining international competitiveness D. Free determination of interest rates

Last Answer : B. Liberating the industry, trade and economy from unwanted restrictions

Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Description : Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Last Answer : (c) reduce the rate of interest

Capital formation in underdeveloped countries is a major bottleneck. The reason can be a. Small size of market with no incentive for investment b. Low level of income c. Demonstration effect d. All the above

Description : Capital formation in underdeveloped countries is a major bottleneck. The reason can be a. Small size of market with no incentive for investment b. Low level of income c. Demonstration effect d. All the above

Last Answer : d. All the above Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.

Why are interest rates so low in countries like USA, UK?

Description : Why are interest rates so low in countries like USA, UK?

Last Answer : I think it has something to do with our unique economic theory on how to avoid bankruptcy through low interest overnight interbank loans. Or something like that. Calling @zenvelo…

How low can interest rates go in Canada and other countries?

Description : How low can interest rates go in Canada and other countries?

Last Answer : I don’t believe it could ever go in the negative, but we will see I really doubt it could go any lower than it already is.

With interest rates so low, what might be a good investment?

Description : With interest rates so low, what might be a good investment?

Last Answer : answer:Well that’s the million dollar questions now isn’t it :) My investing club is looking into domestic and international stocks that deal in: trees, water, pipline manufacturers, biotech and precious metals, palladium especially.

Where can I find a reputable car financer with low interest rates and low monthly payments?

Description : Where can I find a reputable car financer with low interest rates and low monthly payments?

Last Answer : Capitol One has a great auto financing program. Their website is http://www.capitalone.com/auto-financing/ . Another place you could check is https://www.chase.com/auto-loan/car-loan.htm .

The economic environment for this simulation game will include a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates. b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates. c. a highly variable environment featuring significant changes in growth, inflation, and drastic fluctuations in interest rates. d. a constant environment featuring measurable growth, constant inflation rates, and constant interest rates. e. economic downturn and other surprises.

Description : The economic environment for this simulation game will include a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates. b. a favorable environment featuring ... inflation rates, and constant interest rates. e. economic downturn and other surprises.

Last Answer : b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates.

Interest on public debt is a part of : (1) transfer payments by the enterprises (2) transfer payments by the Govt. (3) national income (4) interest payments by households

Description : Interest on public debt is a part of : (1) transfer payments by the enterprises (2) transfer payments by the Govt. (3) national income (4) interest payments by households

Last Answer : (2) transfer payments by the Govt. Explanation: In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income in the market system. These ... interest on public debt, social security, and government making subsidies for certain businesses (firms).

Interest on public, debt is part of - (1) Transfer payments by the enterprises (2) Transfer payments by the government. (3) National income (4) Interest payments by households

Description : Interest on public, debt is part of - (1) Transfer payments by the enterprises (2) Transfer payments by the government. (3) National income (4) Interest payments by households

Last Answer : (2) Transfer payments by the government. Explanation: In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income in the market system. These payments ... central government. In the budget, it is listed among the transfer payments by the government.

income, prices and rate of interest(c) Average cost and Marginal cost (d) Total cost and Marginal cost

Description : Producers’ surplus is equal to the difference between (a) Price and Marginal cost curve (b) Price and Marginal (c) Average cost and Marginal cost (d) Total cost and Marginal cost curve

Last Answer : ) Price and Marginal cost curve

Why does a cheap money low interest economy once again favor the rich and penalize the poor and middle class?

Description : Why does a cheap money low interest economy once again favor the rich and penalize the poor and middle class?

Last Answer : The current real estate market here definately favors the rich, as new homes are not as plentiful, so there are bidding wars for available homes, which knock out the poor and middle class potential buyers from the purchase.