Home › Bihar Board Class 12 (Arts) › Economics › Money and Banking › In the transaction demand equation MdT = k.T, k is
In the transaction demand equation MdT = k.T, k is
Aa positive fraction
Ba negative number
Cgreater than one
Da constant zero value
Answer & Solution
Correct answer: A. a positive fraction
Money held for transactions is a fraction of the value of transactions, so k is a positive fraction.
Related questions
How many major commercial banks did India nationalise in 1969?The Reserve Bank of India was nationalised in which year?Interbank deposits are excluded from money supply because only deposits of theWhich measures are called narrow money?M3 equals M1 plusWhich of these is the narrowest RBI measure of money?Money supply is aFixed deposits are an example of